20th Nov 2013 08:27
LONDON (Alliance News) - ServicePower Technologies PLC saw its shares surge early Wednesday after it said the strong growth it posted in the first half of the year had continued into the second half, with revenues by mid-October up on the GBP11.1 million it had recorded over the same period in 2012.
The software company said it had secured new customers, while renewals with existing customers are high as they adopt more of the company's products and expand into new areas.
"In tandem with driving revenue growth, the management team remains focused on delivering improved operating margins, providing a strong financial footing for the business for it to enter into 2014," it said in a trading update.
In September, the company had reported that it swung to a pretax profit in the first half of 2013, as revenues jumped 31% to GBP7.3 million, from GBP5.6 million.
The company develops labour scheduling software allowing clients to better manage employees, third party contractors and on demand field resources. Current customers include Assurant Solutions, Mitsubishi, Farmers Insurance, and Pitney Bowes.
It said it had cash balances of GBP1.7 million at the end of October after it repaid a portion of its convertible debt, leaving about GBP0.8 million outstanding, and before it collects larger maintenance renewals due prior to the end of the year.
"Development of the company's field service platform has resulted in an extended market reach and new customer wins. New customers secured in the second half of the year include several tier 1 appliance manufacturers as well as the North American segment of an international retailer," it said in the statement.
"Some of these contracts have come through our partnerships with global insurance administration companies. Additionally, contracts with an international beverage bottler and an international consumer products engine manufacturer were also implemented in the second half of the year," it added.
ServicePower Technologies shares were up 39.9% at 5.07 pence early Wednesday, the biggest gain on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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