4th Sep 2018 10:09
LONDON (Alliance News) - Marketing firm Porta Communications PLC said Tuesday its interim loss deepened on lower revenue as it prepares to focus on profitability following a period of restructuring the business.
For the six months ended June, Porta's pretax loss on continuing operations widened to GBP1.8 million from GBP1.1 million a year prior. This was as revenue fell 4.6% to GBP18.5 million from GBP19.4 million.
Profit performance was hurt by GBP995,860 in restructuring costs, up from GBP62,624 the year prior.
"For every full financial year since inception, Porta has experienced continuous growth in gross profit - the focus is now to drive productivity and profitability," Porta Joint Chief Executive Officer Emma Kane said. "The major elements of the necessary internal restructuring will be completed in the second half of 2018 and we are confident about the group's immediate and future prospects."
Porta does not pay a dividend.
"We are now in a position where we can see the end of the phase which was initiated when I became chairman in May 2017," Chairman John Foley explained. "That phase involved the necessary internal restructuring, removal of non-performing costs and changes to senior management in April this year, so that financial performance could be achieved to support the original vision and therefore justify the considerable financial investment which has so far been incurred."
The firm expects its restructuring to be complete in the second half of 2018. It also expects the benefits of around GBP3 million in non-performing costs that have been removed from operations to be realised in the final quarter of the year.
"The group's balance sheet still requires some strengthening but that can now be done from a position of positive operating cashflow and a leaner and more appropriate cost base from which to deliver future profitable trading growth and sustainable, appropriate results to shareholders from 2019 onwards", Foley added.
Net debt jumped 14% to GBP9.6 million from GBP8.4 million six months earlier.
Shares in Porta were untraded at 1.80 pence on Tuesday.
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PTCM.L