14th Jul 2020 12:13
(Alliance News) - IDE Group Holdings PLC on Tuesday reported a revenue decline in 2019, but said it reaped the rewards of cost reduction plans.
Pretax loss for 2019 narrowed to GBP10.9 million from GBP30.5 million, despite a 32% drop in revenue to GBP28.2 million from GBP41.1 million.
The IT services provider said gross profit margins improved to 23% from 16% in 2018.
IDE added that it swung to adjusted earnings before interest, tax, depreciation and amortisation of GBP1.1 million from a GBP3.9 million loss.
"This year has been pivotal for the group, and whilst we saw a significant drop in revenues, we saw an increase in adjusted Ebitda. This confirms that the cost reductions and rationalisation of loss-making business has moved the group to a better trading position from which to now grow," IDE said.
"Trading in the current financial year remains broadly in line with management expectations, although the mix has changed due to the current Covid-19 crisis. We have won and implemented additional projects in the Managed division supporting mobile working across a number of our clients, offset by the expected pipeline of projects being deferred into the second half."
IDE shares were 2.7% higher at 2.88 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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