KUALA LUMPUR: Cybersecurity firm LGMS Bhd reported a net profit of RM4.08 million for the fourth quarter (Q4) ended December 31, 2024 (FY24), up from RM3.71 million a year earlier.
This represents a 10% growth for the quarter.
The net earnings were achieved on the back of revenue amounting to RM13.23 million for the quarter, representing an increase of 24% from the RM10.67 million posted in the same quarter last year.
In a filing to Bursa Malaysia, the company said for FY24, net profit climbed to RM12.34 million from RM11.22 million in FY23.
FY24 revenue rose to RM43.63 million from RM34.24 million, reflecting sustained growth driven by high-value cybersecurity projects and fuelled by larger-scale engagements in the financial and technology sectors.
Chairman Fong Choong Fook expects even stronger performance in the quarters ahead, as LGMS has embarked on a growth acceleration programme since late last year to expand its workforce, build strategic partnerships and introduce new service offerings.
“With regulatory frameworks tightening and cyber threats becoming more sophisticated, we have been receiving orders from organisations looking at strengthening their security postures,” he said in a statement.
Fong is also optimistic about the potential of StarSentry, LGMS’ automated cybersecurity preventive platform.
Despite minimal marketing efforts, it has already shown strong organic growth.
“Given our commendable Q4 FY24 results, we have yet to push StarSentry aggressively, yet we are already seeing promising traction from our existing business,” he said.
Growth expansion plans include accelerating the expansion of the StarSentry ecosystem, introducing new business models to enhance its adoption further, and enlarging its local and foreign networks.
“This year, we will go all-in on scaling StarSentry with new business models and strategic partnerships,” Fong said.
“We are actively expanding our network of partners, including managed security service providers (MSSPs), financial institutions and government agencies to integrate StarSentry into multi-layered cybersecurity environments across industries,” he said.
LGMS is also developing new business models, such as cybersecurity-as-a-service (CaaS), offering on-demand security operations that allow businesses to adopt flexible, scalable cybersecurity solutions.
The company is also developing industry-specific compliance solutions tailored for the financial services, healthcare, and telecommunications sectors.
These solutions ensure that companies meet evolving regulatory requirements and risk management standards.
“In addition, LGMS is working to enhance our managed detection and response (MDR) services, incorporating AI-powered threat intelligence to provide real-time cybersecurity defence,” said Fong.
“As part of our long-term and sustainable growth strategy, LGMS is also transitioning towards a subscription-based model, ensuring another recurring revenue stream and scalable service offerings.
“This approach aligns with industry trends, enabling businesses to adopt cybersecurity solutions with greater flexibility while ensuring continuous protection,” said Fong.
LGMS has been actively expanding its workforce to meet rising demand and capitalise on new market opportunities.
Previously operating without a dedicated business development team, the company has strengthened its market outreach, allowing it to access new enterprise and public sector opportunities.
With increasing regulatory requirements and heightened cybersecurity awareness, LGMS is seeing stronger engagement from public sector agencies, particularly in compliance-driven sectors.
This, coupled with the booming cybersecurity industry and the enactment of the National Cyber Security Act, which mandates stricter compliance measures and reinforces cybersecurity governance across key sectors, has driven the company to scale up its workforce.
As of early 2024, LGMS had a workforce of 118. Today, it has 149 employees, and the company is still actively hiring and seeking talent.
“Even as we continue aggressive hiring, we have achieved a remarkable 10 per cent growth in net profit alongside a 27 per cent increase in revenue for the full financial year — highlighting LGMS’ strong potential once our optimal workforce is in place.”
“2025 is set to be an exciting and prosperous year for LGMS with more announcements forthcoming in the months ahead,” Fong said.
