24th Aug 2018 09:43
LONDON (Alliance News) - Software firm Pebble Beach Systems Group PLC said Friday its half-year loss narrowed as costs fell as it prepares for a stronger second half of the year.
For the six months ended June, pretax loss narrowed to GBP900,000 from GBP2.2 million the year prior. This was despite revenue dropping to GBP3.7 million from GBP4.6 million the year before.
Profit performance was helped by a sharp fall in cost of sales to GBP1.0 million from GBP2.0 million the year prior.
It was also boosted by a dramatic drop in expenses. Research & development costs fell to GBP600,000 from GBP864,000 the year before. Administrative expenses to GBP830,000 from GBP1.9 million the year prior.
"The first half of 2018 has seen steady trading results which are in line with our expectations, and the significant steps taken to move to ongoing profitability and cash generation have proved to be effective," Pebble Beach Chief Executive Officer John Varney said.
"We are strengthening our ability to develop the technology and services required to support customers through a period of significant technology change to underpin future growth," Varney added.
"With the issues of the past now behind us we look forward to focussing on the opportunities being presented by the changes in the broadcast market," Varney continued.
The firm anded that an "unsettled market" had led to orders being delayed during the period. These orders are now scheduled to be delivered in the second half of the year.
"The broadcast market continues to be challenging as customers assess how best to invest in the evolving technologies of IP and cloud-based infrastructures whilst maintaining their traditional infrastructure," Varney said.
"Orders for the second half are forecast to be stronger than the first half, and this improved pipeline underpins this outlook," Varney continued. "This will feed through to improved revenue in the second half. The company expect the current trading trends to continue into 2019 during this period of technology and commercial transition."
Shares in Pebble Beach were 4.0% lower at 3.60 pence on Friday.
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