30th Jan 2019 13:41
LONDON (Alliance News) - Ingenta PLC on Wednesday said it saw a double-digit decline in earnings in 2018 due to a restructuring of the business.
The software services provider confirmed that it has made considerable progress in its business combination plans, moving away from a divisional product siloed structure, which will enable the company to operate in a more efficiently.
Ingenta expects to report revenue of GBP12 million and adjusted earnings before interest, taxes, depreciation, and amortization of GBP800,000. In 2017, the company generated revenue of GBP14.7 million and adjusted Ebitda of GBP1.4 million.
Progress made by Ingenta over the past 18 months to reposition the business has resulted in cumulative cost reductions of GBP4 million on an annualised basis. This has substantially de-risked the company, it said, enabling it to increase profitability from a lower revenue base leading the company to look forward to 2019 with "considerable optimism".
Ingenta said it intends to pay a dividend of 1.5 pence per share for the 2018 and intends to announce its 2018 results in March.
"The results of our recent business combination plan are now starting to produce results and I look forward to 2019 with great enthusiasm," said Chief Executive Scott Winner.
"The business is now leaner and focussed on delivering first class services to all our customers meaning we are significantly better placed to propel the business through the next stage of its growth," added Winner.
Ingenta shares were trading 2.5% higher on Wednesday at 75.88 pence each.
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