Cybersecurity services provider LGMS Bhd reported a weaker set of results for the first nine months of FY2025, with net profit falling 23% year-on-year (y-o-y) to RM6.3 million, missing both internal and consensus expectations.
The group’s 9MFY25 earnings accounted for only 61% and 63% of Kenanga Research’s and market forecasts respectively, below the historical trend in which nine-month results typically make up around 68% of full-year performance.
The underperformance was attributed largely to softer revenue from its cyber risk management and compliance segment, due to fewer billable clients from the technology and telecommunications & media sectors. These industries have yet to fully normalise activity levels following tariff-related disruptions earlier in the year.
LGMS declared no dividend for the quarter.
Flat Revenue, Higher Costs Pressure Margins
Group revenue for 9MFY25 was broadly unchanged at RM30.3 million (-0.4% y-o-y). The subdued second quarter—affected by tariff uncertainties that prompted clients to delay cybersecurity spending—offset improvements seen in the third quarter.
Despite stable turnover, pre-tax profit slipped 23% y-o-y to…
