18th Dec 2019 11:25
(Alliance News) - GRC International Group PLC on Wednesday reported a double-digit decline in revenue in the first half of its current financial year amid challenges.
The stock was 28% lower in London in morning trade at 17.00 pence a share.
The IT services firm reported a pretax loss of GBP2.2 million for the six months to the end of September, broadly unchanged on the prior year, despite revenue falling by 20% to GBP7.1 million from GBP8.9 million.
Double-digit revenue growth was recorded in two of GRC's four key revenue streams, it said. Revenue from Consultancy was up 12% year-on-year to GBP4.2 million in the first half, while Software revenue more than tripled to GBP700,000.
GRC explained that revenue growth in those two divisions was driven primarily by its products and services.
However, revenue from Publishing & Distribution was down by 55% to GBP500,000 and Training revenue reduced by 58% year-on-year to GBP1.7 million.
"The macro economic climate in the first half, with customers' ongoing worries about Brexit and the overall macro-economic malaise continued to provide challenges for the group," said Chief Executive Alan Calder.
He added: "We are pleased with the strong growth from cyber security products and services. Investments we have made in the previous year in new business areas and geographies, have started to bear fruit. This gives us the momentum to deliver revenue growth and underpin our long-term growth into financial 2020 and beyond."
By Evelina Grecenko; [email protected]
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