22nd Jan 2024 11:59
(Alliance News) - Cordel Group PLC shares fell on Monday, despite reporting a narrowed interim loss as well as higher revenue.
Cordel is a London-based company, whose flagship platform uses artificial intelligence to supply transport corridor analytics. Its shares fell 9.5% to 4.71 pence each in London on Monday around midday.
Cordel reported that in the six months ended December 31, revenue more than doubled to GBP2.0 million from GBP945,000 a year earlier
Its pretax loss narrowed to GBP715,000 from GBP855,000.
However, in the period, cost of sales surged to GBP924,000 from GBP268,000. The company explained that this was "due to an increased proportion of hardware vs software and services in new contracts in the half year".
Gross margin fell from 72% to 53% as a result, but Cordel expects this to balance out in the full year.
Chair Ian Buddery said: "The interim results show very pleasing growth compared to the corresponding period last year, with sales momentum building in all markets.
"During the period, we added new sales, business development and technical support staff in the US and UK and are delighted with the resulting uplift in market engagement, which gives us confidence for continuing success in 2024 and beyond."
By Sophie Rose, Alliance News senior reporter
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