2nd Jun 2016 08:40
LONDON (Alliance News) - Electronic Data Processing PLC on Thursday said its interim results were broadly similar to those posted for the same period a year earlier, although its pretax profit was hit by repair costs at its surplus property in Milton Keynes.
The sales and planning software provider said its revenue was GBP2.51 million for the six months ended March 31, in line with the GBP2.52 million it reported for the same period a year earlier, while its adjusted operating profit, which excludes one-off costs, rose by 19% to GBP240,000 from GBP202,000.
However, Electronic Data said pretax profit came in lower in the period, at GBP116,000 from GBP179,000, after the company incurred an exceptional charge of GBP98,000 relating to repairs on its property in Milton Keynes.
Electronic Data accepted an offer on this property in December, although this has not yet completed. The company said, should the sale complete, it expects to save GBP35,000 a year in costs in relation to the property.
Although "trading conditions remain competitive", Electronic Data said, it secured a number of new customers for its flagship Quantum VS and Vecta products during the period. Quantum VS is a suite of software modules for builders merchants and electrical wholesales for use in administration tasks, whilst Vecta allows companies to analyse customer buying habits.
Contracted recurring revenue made up 81% of revenue during the period, edging upwards from 80% for the same period a year earlier.
Electronic Data said it will pay an interim dividend of 2.00 pence per share, the same as last year.
"We have recently announced that we are carrying out a strategic review and that process, which is in its early stages, is continuing. We will report the conclusions of the review to shareholders in due course. Whilst we expect trading conditions to remain competitive, with our ongoing investment in our key products and robust business model, we remain confident about the outlook for the remainder of the year," said Chairman Michael Heller.
Shares in Electronic Data were up 4.6% at 76.90 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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