22nd Sep 2014 08:06
LONDON (Alliance News) - NetDimensions Holdings Ltd Monday that it is trading in line with current consensus analyst expectations, and expects further growth going forward, as it posted a narrowed pretax loss in the half-year to end-June.
The software and services company posted a pretax loss of USD2.4 million, narrowed from a loss of USD3.2 million a year before, as revenue rose to USD9.1 million from USD6.6 million, although this was offset somewhat by higher operating expenses and cost of sales.
Revenue growth was driven by an improved performance from its global secure software-as-a-service offering, a full contribution from its healthcare division which was formed last March from the company's acquisition of eHealthcareIT, as well as higher revenues from its expanded global services division.
The company added 32 new clients, including Chase Bank Kenya Ltd and Credit Corp Ltd. Average deal size for direct new clients rose to USD93,000 from USD63,000 a year before, said the company.
NetDimensions implemented a three year business plan in 2013 with the aim of increasing its market share, and targeting clients in "high consequence" industries in the talent management systems market.
The company restructured and expanded its service offerings, and re-organised its professional services team into its Global Services division. Invoiced sales in its targeted 'high-consequence industries' were 83% of total sales during the half-year, up from 70% a year before.
It said that it had completed a "substantial" part of its investment phase during the half-year, and will now focus on driving additional growth both organically and through selective acquisitions.
Shares in NetDimensions were trading up 6.9% at 70.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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