KUALA LUMPUR: TFP Solutions Bhd expects no significant improvement in its financial results this year (FY15), as the enterprise resource planner undergoes a phase of transition to cater to an evolved information technology sector.

Group managing director Quah Teik Jin expects revenue to grow by 10% in the next financial year ending December 2016, after the roll-out of its integrated cloud computing services to Myanmar, Vietnam and Thailand.

“We are in the midst of discussions with a few companies [to form partnerships] in Vietnam, Myanmar and Thailand as we believe the Asean Economic Community (AEC) will give us the platform to do business there cost-effectively,” he told reporters after the company's annual general meeting yesterday.

"We target two partnerships in each country. Exploring these countries is part of our Phase 1 plan over the next 12 to 18 months before moving to other developing countries in the region,” he said.

Quah does not discount the possibility of a merger or acquisition in order to create a footprint in Myanmar and Vietnam, similar to its Indonesian acquisition two years ago.

TFP Solutions reported a net loss of RM15.35 million on revenue of RM89.71 million for FY14. For the first quarter ended March (1QFY15), the company staged a rebound to post a 57.7% year-on-year increase in net profit to RM235,000 on the back of higher revenue of RM23.14 million.

Quah acknowledged that the company’s financial perfomance has been weak over the years due to a slow economy, hence its plan to consolidate its businesses and expand overseas.

Adding that its decision to expand overseas was to help ensure that its income is sustainable rather than a spurt, Quah said Malaysia currently contributes between 80% and 90% to the company's revenue, while the remaining 20% comes from its Indonesian market.

TFP Solutions' order book now stands at about RM20 million.

TFP Solutions shares closed unchanged at 17 sen yesterday, with a market capitalisation of RM33.84 million.

This article first appeared in The Edge Financial Daily, on June 25, 2015.