7th Apr 2014 09:57
LONDON (Alliance News) - Nasstar PLC Monday expressed confidence for 2014 following its reverse takeover of hosted desktop and managed services provider e-Know.net, as it posted a widened pretax loss for the fifteen months ended December 31, 2013.
The cloud computing company changed its year end to bring its accounting reference date in line with its acquisition of Denara Holdings Ltd, the holding company of e-Know.net Ltd, in January 2014.
Nasstar posted a pretax loss of GBP3.0 million, widened from a GBP383,000 loss in 2012, as revenue rose to GBP2.5 million from GBP2.4 million but this was offset by a GBP844,000 impairment charge and GBP1.0 million in exceptional costs.
The exceptional costs related to acquisitions and onerous contract provisions of GBP413,000.
Gross margin declined as the company invested in further data centres and licence costs imposed by Microsoft increased, it said.
The company said that its enlarged group, including e-Know.net now has recurring revenue equivalent to over GBP9 million per year. Nasstar expects to create cost synergies from the integration of the company; it will combine its data centres and finance functions.
Denara posted a pretax profit of GBP514,00 for 2013, up from GBP408,000, as revenue rose to GBP6.9 million from GBP5.8 million in 2012.
Nasstar expressed confidence for 2014, saying that whilst business and economic conditions remain mixed, it was progressing in line with expectations.
The company did not propose a dividend for 2013.
Shares in Nasstar were trading down 4.6% at 7.75 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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