18th Aug 2014 08:13
LONDON (Alliance News) - 21st Century Technology PLC Monday maintained its expectations that revenue for the full-year will be similar to the previous year, as it swung to a loss in the six months to the end of June due to revenue decline.
21st Century Technology provides closed circuit television and monitoring systems for the bus and rail industries.
The company posted a pretax loss of GBP8,000 after recording a pretax profit of GBP481,000 in the comparable period, and saw revenue decline to GBP5.5 million from GBP5.8 million, as cost of sales rose and it posted GBP140,000 in reorganisation costs. This was a result of reducing its headcount by 20%.
Despite falling behind the previous year, 21st Century said that revenue had been slightly ahead of its expectations, as it saw stronger-than-expected demand for its on-bus systems in the UK and Sweden. Additionally, it installed the majority of an advanced CCTV contract in its rail division.
The company received short term contract extensions with its two largest bus customers, Arriva UK and FirstGroup PLC. It noted that it remains "sensitive" to the longer term retention or extension of these accounts in 2015 and beyond, and said it was "doing all we can" to main or improve them further.
"The encouraging feedback we are receiving and achievements to date, leads us to be cautiously optimistic view about our future," the company said.
Shares in 21st Century Technology were trading 2.0% lower at 6.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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