18th Sep 2013 08:45
LONDON (Alliance News) - Norcon PLC Wednesday posted a USD1.4 million net loss in its half-year interim results, almost tripling the USD0.5 million loss sustained for the comparable period last year, as it continues its restructuring efforts.
The global communications network said revenue fell to USD22.9 million, down from USD25.3 million in H1 2012 for the six months to June 30, attributable to declines in revenue from Norcon's legacy market, although mitigated by higher revenues in the USA and Asia, said the company.
Gross profit fell by USD0.3 million to USD3.1 million. However, the company said gross margin improved 14% in the half-year results, up from 11% for the same period last year.
Norcon reported a USD0.3 million EBITDA loss, in comparison to a USD0.3 million profit in H1 2012.
The publication of Norcon's latest results follow a period of restructuring as the company moves into new markets and services, in addition to its traditional geography and client base; these activities are generating positive progress and helping the firm to gain traction, said the company in a statement. Chairman, Trond Tostrup, said, "We are starting to see some of the expected benefits emerging from our 3 year diversification plan. This is bringing us new customers in new geographical areas, new engineering based services and cost savings from tighter financial control coupled with more efficient and structured operations."
The company said it has secured new deals in territories including the USA, Europe, the Middle East and Asia Pacific, noting that revenues outside Norcon's legacy market already account for nearly 50% of total revenues during the reporting period, up from 30% during the same period last year. Tostrup adds, "We expect to see this trend continue and to further benefit from the full effect of our reduced overhead costs in the holding company."
During the reporting period, the company has invested in new engineering services and new operations in the UK and the US, with plans for further growth of these sites currently being discussed. The Asia Pacific unit has performed in line with expectations, says Norcon, while the firm has closed some smaller projects in the Middle East. The company said it has renewed some key projects in the Asia Pacific and Middle East regions into 2014 and hopes to benefit from its diversification plan as its more efficient operations generate cost savings.
Norcon shares were up 3.45% to 15.00 pence in early trading Wednesday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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