14th Sep 2015 08:53
LONDON (Alliance News) - Escher Group Holdings PLC on Monday said it is currently trading in line with its expectations, as it reported a rise in pretax profit for the first half of 2015.
Escher Group provides software for the postal, retail and financial industries.
For the half year to end-June, the company posted a pretax profit of USD1.3 million, up from USD418,000 a year before, as revenue rose to USD11.9 million from USD11.1 million, and operating expenses reduced to USD6.1 million from USD6.3 million.
Revenue growth was driven by a strong performance in license revenue due to a key customer reaching a milestone, it said, and growth in maintenance revenue, which offset a fall in software development and consulting revenue, and a drop in support revenue hit by the weakness of the euro.
Escher did not propose an interim dividend.
"We have had a solid first half. The rollout of our software to two major customers in Malaysia and North America is a significant milestone for us, providing a steady increase in future recurring revenue," said Chief Executive Officer Liam Church in a statement.
"Given the quality of our pipeline, the growth of our recurring revenue base and the strength of our technology set, we remain confident about our growth prospects," Church added.
Shares in Escher were untraded Monday morning. It last closed at 189.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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