29th May 2014 10:23
LONDON (Alliance News) - Geong International Ltd said it has made progress in 2014 with its strategy of achieving greater gross margins and short payment terms by focusing more on Software as a Service business, however due to the appreciation of sterling it expects to report revenues of around GBP8.0 million and a "very small" pretax profit for the year to March 31.
Geong said it has signed China CITIC Bank and Cinda Group as Software as a Service clients, taking the number of SaaS clients to 28 at the year-end.
The Chinese firm said its cash balance at the end of March stood at GBP3.6 million. Geong said it is currently making arrangements to enable it to have sufficient resources capable of being transferred out of China.
"Market conditions remain challenging but the board remains confident of Geong's business model and its potential," the firm said.
Geong shares were trading down 10.7% at 3.35 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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