26th Jul 2018 13:13
LONDON (Alliance News) - Online merchandising provider ATTRAQT Group PLC said on Thursday interim revenue was boosted by its acquisition of Fredhopper last year.
Revenue in the first half of the year rose 53% to GBP8.4 million, up 11% on a like-for-like basis. The company's pretax loss narrowed to GBP1.7 million from GBP3.2 million a year earlier.
The sharp jump in revenue reflected ATTRAQT's acquisition of onsite search provider Fredhopper, completed in March 2017.
Comparable software-as-a-service revenue increased by 10% to GBP7.5 million and services revenue increased by 24% to GBP900,000.
The SaaS gross margin increased by two percentage points to 67%, and the services gross margin increased by 12 percentage points to minus 6%. The negative services margin is due to legacy pricing, the company said.
As these legacy projects are completed, the company anticipates the services business will begin operating on a profitable basis in the second half of 2018.
"We are well positioned to drive organic growth by growing average revenue per account through the addition of new targeted accounts, driving customer upsell and extending the capabilities of the platform. at the same, the group continues to review M&A opportunities," the company said, adding it is confident that trading for the full year will be in line with market forecasts.
Shares in ATTRAQT were down 2.9% at 34.00 pence on Thursday.
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