29th Jan 2015 10:58
LONDON (Alliance News) - Ideagen PLC said Thursday that its is currently trading in line with market expectations, expressed confidence for its future, as it posted a decline in pretax profit for its first half on higher operating costs.
The software supplier upped its interim dividend to 0.055 pence from 0.05 pence a year before.
The company posted a pretax profit of GBP453,000, down from GBP515,000 a year before, despite seeing revenue rise 53% to GBP5.7 million from GBP3.7 million, due to higher operating costs and depreciation and amortisation. Revenue growth was boosted by acquisitions, and on an organic basis revenue growth was up 10%.
The company acquire EIBS Ltd during the period for GBP1.25 million last June.
Following the year end the company raised GBP17.5 million in a placing, which it used to fund its acquisition of software company Gael Ltd for GBP18 million. Ideagen said that the acquisition of Gael will enable further consolidation of its manufacturing and healthcare sectors, and provides it with a "strong entry point" into the aviation sector.
"The group has a solid platform of contracted recurring and project revenue and a strong pipeline of new sales opportunities," the company said in a statement. "The board is therefore confident that the group's momentum and enhanced scale following the Gael acquisition will continue to deliver strong and profitable growth this year and beyond."
According to consensus forecasts provided by Morningstar, analysts expect Ideagen to post a pretax profit of GBP3.6 million for the full year.
Shares in Ideagen are trading up 1.5% at 38.81 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
IDEA.L