7th Mar 2016 12:01
LONDON (Alliance News) - Escher Group Holdings PLC Monday said its current financial year has started in line with its expectations, and expressed confidence for 2016 and beyond, as it reported a swing to a pretax profit in 2015.
The software provider for the postal industry posted a pretax profit of USD1.1 million, swinging from a pretax loss of USD470,000, as revenue rose to USD22.0 million from USD21.1 million, helped by lower operating expenses.
Revenue growth was driven by a rise in recurring revenue streams in its maintenance and support segments, as it rolled out contracts with customers in North America and Malaysia,. This helped offset a fall in software license revenue during the year.
Escher said that currently its contracted and recurring revenue for 2016 is expected to amount to more than 50% of its total revenue for the year.
"2015 marked a year of tangible progress with improved profitability driven by the transition to maintenance of two major customers in North America and Malaysia and a major subscription based contract in Germany," said Chief Executive Liam Church in a statement.
"The current financial year has started in line with the board's expectations. Given the quality of our pipeline, current technology set and contracted for revenue, we remain confident about the prospects for 2016 and beyond," Church added.
Shares in Escher Group were untraded Monday morning. They last closed at 150.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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