19th Mar 2014 11:53
LONDON (Alliance News) - IS Solutions PLC Wednesday reported an increase in profit and revenue for the full-year, but warned that it is experiencing the consequences of the strength of sterling, especially against the US dollar.
The web analytics firm posted pretax profit of GBP966,000 for 2013, up from GBP792,000, as revenue rose 6.1% to GBP9.8 million from GBP9.2 million
IS Solutions said its improved position was down to an increase in licence sales revenue and project work revenue.
Licence sales revenue rose to GBP1.6 million, from GBP1.5 million, while project work revenue was GBP4.0 million from GBP3.1 million in 2012. The firm said most of the increase in project revenue came from the analytics arm, which now represents 50.5% of its total projects business.
Financially, cash at the year-end stood at GBP539,000 from GBP70,000 the previous year.
Despite the increase in profit, the company remained cautious and said, "As the company executes more business internationally particularly within the analytics sector, we are experiencing the consequences of the strength of sterling especially against the US dollar."
"Although we don't expect the US dollar to weaken to the same extent in the year (2013: GBP/USD depreciation was circa 11.5%), should the US dollar remain at current levels it will effectively be lowering our day rate for our US dollar business projects by the same percentage," it added.
To offset this, the company said it is looking at a number of options, including increasing its day rate overseas on new projects, re-negotiating rates as projects come up for renewal as well as exploring ways to increase the efficiency and skills of its staff.
The company increases its final dividend to 1.12 pence from 1.00 pence making a total dividend of 1.60 pence from 1.44 pence in 2012.
The stock was trading at 68.00 pence Wednesday morning, down 4.23%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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