25th Mar 2015 10:59
LONDON (Alliance News) - ServicePower Technologies PLC Wednesday expressed confidence for 2015, saying its trading has begun positively, and posted a swing to a pretax loss in 2014, as the company continued to shift its revenue mix.
ServicePower provides field service management software.
The company posted a pretax loss of GBP1.0 million, swung from a pretax profit of GBP45,000, as revenue declined to GBP12.7 million from GBP14.0 million.
ServicePower has been focused on upgrading its existing customers to new products, and growing its software-as-a-service revenue. However, as a result of these actions, some additional professional services revenue was not able to be recognised, and it saw delays in implementing new contracts and pipeline wins, ServicePower said.
Additionally, a low margin contract in its ServiceScheduling segment is winding down, and in its ServiceOperations revenue fell 8%, as lower margin managed service contracts were allowed to expire.
Software-as-a-service revenue rose 17% to GBP2.85 million from GBP2.43 million, and this now makes up 22% of the company's total revenue.
"With our demonstrated ability to win new customers and the investment in our global field management platform, ServicePower is positioned for a strong performance in 2015 and beyond. Trading in 2015 has begun positively, and we are confident of a successful outcome to the year," said Chief Executive Officer Marne Martin in a statement.
Shares in ServicePower are trading down 9.8% at 4.51 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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