Revenue in 4Q fell 12.8% to $83.4 million, from $95.6 million in the corresponding quarter a year ago.
This was mainly due to lower contribution from Challenger’s IT products and services business segment, which saw revenue decline 13.1% to $81.8 million in the quarter.
However, Challenger has declared a 3% higher final dividend of 1.60 cents per share for the year, compared to 1.55 cents per share a year ago.
Cash and cash equivalents stood at $52.3 million as at Dec 31, 2016.
Looking ahead to FY2017, Challenger says it expects the operating environment in the retail industry continue to remain challenging in the current uncertain economic conditions.
“In FY2016, we wrote off two businesses that did not perform up to our expectations. In the first half of 2017, we will also close a number of non-performing outlets. These will have a positive impact on our bottom line for FY2017,” says Challenger's Executive Director and CEO, Loo Leong Thye.
Meanwhile, Challenger will be commencing operations at its new flagship store in Bugis Junction in May 2017.
At the same time, the group says it will focus on driving greater e-commerce productivity from its Hachi.tech online platform to mitigate the downside impact coming from the weak retail operations.
Challenger Technologies last closed at 48 cents on Tuesday.
