23rd Sep 2019 10:53
(Alliance News) - Publishing software developer Ingenta PLC said Monday its interim loss improved on the year prior as costs fell sharply, despite revenue falling after restructuring costs.
For the six months ended June, pretax loss improved to GBP210,000 from GBP581,000 the year prior. This was despite revenue falling 17% to GBP5.3 million from GBP6.4 million the year before.
Profit performance was helped by costs falling 23% to GBP2.3 million from GBP3.0 million the year prior.
"I am pleased to report on the first half results for the group and to outline the significant operational progress that has been made since the beginning of the year," Ingenta Chair Martyn Rose said.
"On an operational level, I am encouraged to see that the fundamental changes we made to the business are delivering tangible benefits," Rose added. "Notably, the business generated GBP1.0 million of operating cashflows in the period, resulting in an overall cash increase of GBP500,000 after payment of dividends and restructuring costs."
At the end of the interim period, Ingenta held GBP1.8 million in net cash compared to GBP1.3 million six months earlier.
"Our commercial product offering is now gaining real momentum, in particular online content delivery solutions and our ability to deal with the ever-increasing complexity of rights and royalty management," Rose said. "In this area, we have had success on a number of fronts."
"We have won four new customer contracts for our commercial products this year, one of which operates in the wider media sector, which is a positive endorsement of the suitability of our solutions outside traditional publishing markets," Rose added. "From a financial perspective, these new customer wins will start to deliver revenue in the second half of the year."
Ingenta does not pay an interim dividend.
"The board remains confident of achieving a material improvement in the trading performance of the group for the remainder of the year and beyond, as the benefits of the recently announced sales wins and restructuring begin to be recognised in our reported results," Rose said.
Rose added the firm intends to exercise its share buyback authority during the remainder of the year, without specifying an amount.
Shares in Ingenta were untraded at 63.06 pence in London on Monday.
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