25th Sep 2018 11:44
LONDON (Alliance News) - Cellcast PLC on Tuesday reported a swing to a small interim profit from a loss the year before on the back of a fall in the cost of sales.
In the six months ended June, the broadcasting company reported pretax profit of GBP5,353 from a loss of GBP144,807 the year before.
Cellcast's revenue was flat at GBP5.8 million but it reduced its cost of sales to GBP5.5 million from GBP5.7 million.
The company said the additional savings were achieved throughout its "improved" online strategy.
Revenue from the company's core UK interactive broadcast business was "broadly in line" at GBP5.4 million from GBP5.5 million.
Cellcast is planning a "prudent" approach until the "major challenges" to the media and entertainment industry caused by Brexit are clarified post-March 2019.
Looking ahead, the company said clients in Kenya have notified it of a "potential reduction and delays" in service payments due to the lack of clarity about the application of new taxes affecting lotteries in the country.
Cellcast is hoping any revenue lost can be off-set by the planned launch of new products and services in the region set for the last quarter of 2018.
Chief Executive Craig Gardiner said: "Revenues in our core broadcast sector and from our overseas gaming services have remained broadly in line, however due to a reduction in cost of sales we have reported a small profit for the period.
"With Brexit uncertainty looming, we are focussing our efforts in our core market of the UK. In particular, we have invested in our online offering, with an emphasis on cost control and improving our margins. We therefore hope that the positive trading will carry on through the second half of the year."
Shares in Cellcast were untraded Tuesday but last closed at GBP1.60 pence each.