10th Nov 2015 10:10
LONDON (Alliance News) - Software Radio Technology PLC on Tuesday said it swung to a loss in the first half of its financial year as its costs did not fall sufficiently to offset a decline in revenue.
The maritime communications company said its pretax loss for the half to the end of September was GBP744,474, compared to a GBP517,122 profit a year earlier. Revenue fell to GBP3.6 million from GBP5.4 million, and cost of sales and administrative expenses did not decline enough to offset the lower sales.
The company said its results will be weighted to the second half as revenue from recent contract wins it secured flows through. Software Radio had warned it would swing to a first half loss at the start of October, blaming the problems on the timing of the revenue from its recent contract wins.
The group said it is confident on its outlook for the second half, with GBP3.6 million in its order book and revenue from contracts in the US and the Middle East set to start being generated.
Shares in the company were down 3.8% at 21.64 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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