27th Mar 2015 09:30
LONDON (Alliance News) - Progility PLC Friday said it swung to an interim pretax profit as revenue grew by 30% and its costs fell, and it said it is expecting a better second half as its acquisitions begin to make an impact and trading picks up in the last four months of its financial year.
The project management services group swung to a GBP1.5 million pretax profit in the six months ended December 31, from a GBP1.1 million loss a year earlier as revenue increased and its costs were shaved.
Revenue for the period rose to GBP24.4 million from GBP18.6 million, whilst administrative expenses fell to GBP5.3 million from GBP6.0 million, both partially offset by finance costs rising to GBP1.0 million from GBP481,000.
At the end of December, Progility reported a cash balance of GBP4.6 million.
"As we have previously stated, however, the group's performance is second-half weighted. The out-turn for the year to June 30, 2015 is heavily dependent on trading in the last four months of our year, which are critical months for sales across the major businesses of the group, particularly in the UK and Australia," said Executive Chairman Wayne Bos.
Progility also said the second half of the year will benefit from the acquisition of India-based Unify Enterprise Communications Pvt Ltd and UK-based Woodspeen Training Ltd, which did not have an impact on the company's first half results.
"While the results for the period do not contain contributions from either India or Woodspeen, nevertheless they do show revenues increased by over 30% and gross profit has improved by 47% over the comparable period in 2013," said Bos.
Progility shares were down 3.6% to 4.70 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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