15th Sep 2015 14:22
LONDON (Alliance News) - Norcon PLC on Tuesday reported its pretax loss narrowed in the first half, as revenue was stable and net financing expenses swung into income.
In a statement, the communications network specialist said it made a USD222,000 pretax loss in the six months to June 30, compared with a USD827,000 pretax loss in the corresponding half the prior year. Revenue was stable at USD20.7 million, as were operating and administrative expenses at USD3.2 million.
The company recorded net finance income of USD27,000, compared with net finance expense of USD586,000, the main reason for the narrowed loss.
Norcon said it expects improved operating profit margins in the second half, and is positive for its overall prospects towards 2016.
The company said there was a delay in some major projects, resulting in a "limited contribution" to revenue in the half.
It expects those projects to have a "more significant" effect in the second half, with overall revenue for 2015 to be "slightly up" from 2014.
"After completing our three-year transition plan, we have now entered a new phase where we expect to reap the fruits of the work done during the last years. We are beginning to see an increase in our customer base, not only in new markets, but also in our legacy market. It will, however, still take some time before we will see a substantial increase in turnover," Chairman Trond Tostrup said in a statement.
Norcon shares were down 5.1% at 15.18 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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