26th Sep 2013 12:07
LONDON (Alliance News) - IT services company Altitude Group PLC Thursday said it narrowed its losses for the first half, but predicted its full-year results would be below expectations.
The company posted pretax losses of GBP483,000 for the period ended 30 June, compared with a GBP217,000 profit a year earlier, despite revenue increasing 1.5% to GBP2.9 million from GBP2.8 million in 2012.
The primary focus of the group continues to be on the expansion of the software as a service offerings (SaaS), under the trade-only umbrella both within the UK and increasingly within North America
However, Altitude said recurring revenue generation has proven to be lower due to the decision to divert resources towards the delivery of large client opportunities, which will increase annual revenues by USD0.5 million going forward.
The clear focus on SaaS customers prevented the firm from carrying out the "one off" projects that featured more heavily in the same period for 2012, it said.
The company said as a result, the most appropriate comparison is that of growth in recurring revenue of 44% as at June 2013 compared to June 2012.
Altitude said it had no debt and cash balances of GBP0.4 million and repaid GBP0.2 million of the GBP4.0 million 2016 loan notes outstanding from the sale of the promotional marketing division in 2011.
Following a slow start to the year, the company said it expected its full year results to be below expectations.
The stock was trading at 12.73 pence, down 6.02 pence or 32%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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