19th Mar 2014 09:40
LONDON (Alliance News) - Digital Globe Services Ltd Wednesday posted a decline in pretax profit in the half year ended December 31, 2013, as revenue growth was offset by increased spending on staff and new offices.
DGS said it is considering an interim dividend, and it will be announced following the completion of its next scheduled board meeting. It paid a total dividend for the financial year ended June 30, 2013 of 3.40 pence. The company floated on AIM in February 2013.
The company posted a pretax profit of USD761,617, down from USD1.1 million in the previous year, as revenue rose to USD17.7 million from USD11.1 million, and sales costs and operating expenses rose due to increased investment in headcount and operations.
Sales costs rose to GBP11.5 million from GBP7.1 million, and administrative expenses rose to GBP5.1 million from GBP2.6 million.
The company bolstered its finance, sales and technical support teams, expanded its facility in Lahore, and invested in a new head office and call centre in Karachi, Pakistan.
Revenue growth was driven by the company's core clients, but DGS said it had diversified its revenue over the period, with its top five clients now accounting for 80% of revenue, down from 91% in the previous year.
The DGS Edu business, which the company acquired in November 2013, has performed in line with exceptions. The company said it continues to look at other acquisition opportunities to complement its existing business.
DGS said that early trading in the second half of the year remained positive and in line with expectations. It expressed confidence of a successful outcome for the year as a whole.
Shares in Digital Globe were trading up 3.1% at 215.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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