18th Apr 2016 08:41
LONDON (Alliance News) - SimiGon Ltd on Monday reported a slight increase in pretax profit in 2015, as lower costs helped offset a fall in revenue and as it shifted its sales mix towards longer-term contracts.
The simulation training products company reported pretax profit of USD1.6 million, up from USD1.4 million in 2014, as a fall in revenue to USD6.9 million from USD8.3 million was offset by lower operating expenses. Research and development costs fell to USD1.5 million from USD2.4 million, which SimiGon said reflected its focus on cost control, whilst still investing sufficient funds into its portfolio of products.
During the period the company won a number of contracts, including a five-year contract with the US Air Force Air Education Training Command.
SimiGon proposed an annual dividend of 0.6 cents per share, maintained from 2014.
"Looking ahead, we will continue to leverage our position in the market and our global footprint to build new partnerships, expand our customer base, and target large contracts. In line with market requirements the company is focusing more and more on high-value, long-term license contracts. The transition to these long-term contracts may lead to lower revenue from these contracts in the early years but is expected to give much better long-term revenue and profit visibility to the company," said Chief Executive Officer Ami Vizer in a statement.
Shares in SimiGon were untraded Monday morning. They last closed at 17.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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