4C Security to maintain growth focus

Security technology company 4C Security Solutions (ASX:FCS) plans to continue to focus on growth this year, after posting its first profit in eight years for FY11.

In its annual report to shareholders, interim CEO Geoffrey Cleaves said the company has retained its objectives of developing new projects, as well as pursuing growth through acquisitions.

4C Security will also work towards the development of a direct sales model in core markets while following a distribution model in others, he said.

Cleaves acknowledged that “the outlook for the...year remains challenging with regard to general global economic conditions, particularly in Europe and the USA,” but said this had not affected 4C Security's plans.

4C Security's products include smart card based access control and electronic locking systems.

For FY11, 4C Security earned a profit of around $45,000, which compares to an $842,000 loss a year earlier. This had still been an improvement on the seven- and eight-figure losses from the previous seven years.

But revenue fell 11.2% to $3.2 million, in a result blamed on subdued market conditions in Europe, the middle east and North America. This market weakness also delayed international growth plans.

The report adds that due to the deterioration of the US dollar against the Australian dollar, 4C Security is being forced to “continually review the group's sourcing of many components and contract manufacturing of products.”

FCS shares stayed flat on Wednesday at $0.017.