28th Jul 2014 09:49
LONDON (Alliance News) - Progressive Digital Media Group PLC Monday posted a lower pretax profit for the half year to end-June, hit by acquisition and restructuring costs and a share based payment charge.
Progressive Digital Media provides business information, research services and marketing services.
The company posted a pretax profit of GBP213,000, down from GBP3.6 million a year earlier, despite seeing revenue rise to GBP30.7 million, from GBP28.4 million
A share based payment charge of GBP3.0 million was a result of the award of additional share options for senior management under its long term incentive plan.
The company said its first half earnings had been hit by its acquisition of Pyramid Research and Current Analysis Inc. It does not expect these acquisitions to add to earnings in the current year, but expects growth from 2015 onwards.
Progressive noted that its recent acquisitions will increased its exposure to exchange rate movements, as it increases the level of its revenue denominated in US dollars to 35%, from 10%.
In the first half, the company's earnings were hit by around GBP800,000 due to the strength of sterling. If exchange rates remain at the same level, it expects a similar hit on its second half earnings.
Progressive expressed confident that its focus on building its consumer and technology business, and information services will provide a basis for continued long-term profitable growth.
Shares in Progressive were trading down 1.9% at 265.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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