24th Mar 2016 09:38
LONDON (Alliance News) - Professional services and communications company Progility PLC on Thursday said it swung to a half-year loss and said the full financial year will be heavily dependent on an improved second half.
Progility said it swung to a pretax loss of GBP1.4 million for six months to the end of December, from a GBP1.7 million profit a year earlier, with the main difference being a GBP2.8 million exceptional gain the company made on its Indian business a year earlier.
Revenue grew to GBP30.5 million from GBP24.7 million, and gross margin improved to 38.6% from 36.2%. The revenue growth was mainly driven by acquisitions Progility made in 2014.
The company's Professional Services division performed well in the half, and it made investment to expand its Healthcare business to drive organic growth. The Communications arm performed well in its new Indian market but took a heavy hit in Australia, where the business has suffered from the downturn in the country's mining and energy industries.
"Overall, we continue to pursue our strategic growth objectives. The outturn for the year to June 2016 as a whole remains heavily dependent on the second half of the year. Actions taken by management in the first half to reduce costs and increase revenue have begun to improve performance across most areas," said Executive Chairman Wayne Bos.
Progility shares were down 23% to 0.75 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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