29th Apr 2019 11:39
LONDON (Alliance News) - Nasstar PLC on Wednesday reported a slightly narrower annual loss as it said Chair Peter Daresbury will step down from his role in October.
Daresbury has been chair of the IT service-management software firm for 12 years and will be replaced by current Non-Executive Director Nick Bate.
Nasstar has hired Ben Marnham to fill the non-executive director role vacated by Bate. Marnham was chair of Solar Communications from 2014 to 2017 and was a founding member of business telecoms and technology company Alternative Networks.
For 2018, Nasstar reported a pretax loss of GBP1.4 million, compared to GBP1.6 million in 2017. Revenue increased 6.6% to GBP25.7 million from GBP24.1 million the year before.
Nasstar's gross margins reduced to 65% from 68% the year before, primarily due to increased licence costs and the "continued pressure" on exchange rates, the margin on "some" hosted licences reduced. The company added: "An initiative to mitigate this pressure is being undertaken as part of the product strategy work started during the period, but is not expected to bear fruits until next year."
Nasstar's operating expenses were broadly flat at GBP17.8 million.
The company proposed a final dividend of 0.09 pence, 50% higher than the final distribution in 2017.
"Despite the very challenging macroeconomics of the technical sector, caused by wider economic uncertainties combined with increasing cost pressures and competition, Nasstar has had a positive 2018. The "Nasstar 10-19" programme has focused on key areas to mitigate as much as possible the market pressures seen across the technical sector whilst structuring the business as a single entity," said Chief Executive Nigel Redwood.
Redwood believes the company is "now better positioned than ever" to take advantage of its "increased capabilities". He added: "2018 was the second year of our three-year integration strategy known as 'Nasstar 10-19', and I am excited by the organisation this strategy has created."
Shares in Nasstar were up 2.0% Monday at 12.30 pence each.
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