Progility Swings To Interim Pretax Loss, To Focus On Efficiencies

29th Mar 2018 14:11

LONDON (Alliance News) - Progility PLC on Thursday swung to a pretax loss for the first half of 2018 financial year on the back of lower revenue generation, a drop in margins and one-off costs.

Shares in the company were down 11% at 60.00 pence in afternoon trade.

The professional services, healthcare and communications firm recorded a pretax loss of GBP809,000 for the six months to 2017 end, compared with pretax profit of GBP28,000 in the year ago period, on revenue of GBP33.2 million and GBP36.5 million respectively.

In the company's Professional Services division revenue decreased in the period by 8% to GBP7.1 million and Communications by 14% GBP19.7 million. Healthcare division revenue rose 3% to GBP6.4 million.

First half gross profit margin stood at 34.0% versus 34.9%. Operating profit margin totaled 3.0% versus 4.5%.

"Gross profit margins have fallen compared to the previous year, due to one-off items, however improved efficiencies and savings in central corporate costs have reduced the decrease in the operating profit margin," the company said.

Progility has not recommended a dividend for the interim period and doesn't not envisage dividends for the foreseeable future, given the company's strategic direction and historic financial performance.

"Overall, we will continue to pursue our strategic objectives, seek means to reduce costs and increase revenues, and to improve performance across all areas of the business. The second half of the year is expected to be impacted by the continuing focus on operational controls and efficiencies. The changes in the leadership in the individual business units are however not expected to show benefits until the next financial year," the company said.