27th Apr 2015 06:44
LONDON (Alliance News) - Red24 PLC Monday said it expects its results for the recently-ended financial year to beat its own expectations, after it managed to mitigate the loss of a major client earlier in the year by cutting costs and winning other work with existing and new clients, while the current year has got off to a good start.
The company, which provides crisis management to businesses including travel security, kidnap assistance and cybercrime response, had warned last August that a major client had changed the products it was offering its own UK customers, and the loss of work would cost Red24 up to GBP500,000 in revenue and up to about GBP250,000 in pretax profit.
"The previously anticipated adverse impact on results arising from the loss of a major client earlier in the year, was successfully mitigated as the group worked hard to reduce costs and secure new contracts with both existing and new clients," it said Monday.
The company's financial year ended on March 31. It said had gross cash of GBP3.4 million and net cash of GBP2.3 million at the end of the year, a significant improvement from a year earlier, as it improved its working capital management and the financial performance was better than it expected.
"The current financial year has started well with new contracts with insurers in both the product safety and special risk areas. The enhanced travel tracker product has been well received both by existing clients and by a number of new clients and we anticipate growth in sales of the product in the coming year. Recent sales in Germany and Australia have also exceeded expectations and trends indicate this is likely to continue," Red24 said.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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