7th Apr 2015 08:10
LONDON (Alliance News) - Nasstar PLC Tuesday reported growth in profit and revenue for 2014 and said it has met its objective of becoming a "commercially focused, profitable and sustainable business".
The cloud computing firm reported pretax profit for the year ended December 31 of GBP7.7 million, compared with GBP1 million the year before. Revenue rose to GBP11.2 million from just GBP2.5 million in 2013, and adjusted earnings before interest, tax, depreciation and amortisation grew 11% ahead of expectations to GBP2.3 million.
Gross margins also strengthened to 69%, compared with 38% a year earlier.
The company acquired e-know.net and Kamanchi in 2014 which it said allowed it to unlock cost synergies and benefit from inter-group revenue opportunities.
It also said that new pricing policies and cost consolidation programmes within Nasstar UK helped move the subsidiary from a loss-making position to a sustainable positive Ebitda contribution, and that it exited a number of loss-making customer and reseller contracts.
The group said it is currently focusing on integrating public cloud offerings with its hosted managed service offerings, in order to provide its customers with choice and the ability to benefit from developments in the wider market. It said it continues to identify and review possible acquisition opportunities.
A new head of sales will join the group in May, the company said, without naming the person.
"2014 has been a transformational year for Nasstar PLC. I am delighted to say we have delivered on our financial and strategic targets alike, becoming a commercially focused, profitable and sustainable business fit to take advantage of what remains a clear market opportunity," Chief Executive Nigel Redwood said in a statement.
"The combination of the three subsidiaries has created a strong platform for continued growth which will drive shareholder value. Notwithstanding the still mixed macroeconomic environment, the group is optimistic about the year ahead. With a fast-growing end market, a strong product offering and a robust balance sheet, we are well positioned for 2015," he concluded.
The company said it will declare its maiden final dividend this time next year in respect of 2015 and will thereafter adopt a progressive dividend policy.
Shares in Nasstar were trading up 1.5% at 8.75 pence early Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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