11th Dec 2015 09:48
LONDON (Alliance News) - Sales software provider Electronic Data Processing PLC on Friday said its pretax profit and revenue fell in the year to the end of September.
The company's pretax profit fell to GBP347,000 from GBP401,000 a year earlier, as revenue fell to GBP5.2 million from GBP5.5 million. The fall in sales was driven by one of its competitor software business being acquired by one of the company's major customers in 2014. This hit revenue harder in the first half than the second, when sales did improve sequentially.
Contracted revenue's total contribution to the mix fell slightly, down to 79% from 80%, while hosting revenue continued to account for more than half the company's revenue, boosted by a drive by the company to grow its hosting and cloud software operations.
The group said it would pay a final dividend of 3.0 pence per share, keeping its overall dividend for the year flat at 5.0p. But it said future dividend payouts will be considered based on acquisition opportunities and the overall cash position of the company at the time.
At present, it expects to pay a dividend in the current financial year, though it currently intends to pay 2.0p as an interim dividend and 3.0p for the final dividend, flat again year-on-year.
"With a robust, cash generative business model combined with a strong balance sheet I remain confident about the future," said Michael Heller, the company's chairman.
Shares in the company were down 4.6% to 62.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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