15th Sep 2015 07:32
LONDON (Alliance News) - Cloud-based software company Synety Group PLC on Tuesday posted a narrower pretax loss for the first half thanks to a huge rise in revenue as it said its refocused strategy is showing encouraging early progress.
Synety said its pretax loss for the six months to the end of June was GBP1.7 million, significantly narrower than the GBP3.0 million loss it made a year earlier, as revenue surged to GBP1.4 million from GBP608,000, close to the GBP1.6 million in revenue it made in the entire 2014 financial year.
The group's annualised recurring revenue in the half was up to GBP3.9 million at the close of the half, from GBP1.7 million a year earlier, as its user numbers increased to 9,881 from 4,834 and its recurring revenue per user rose to GBP32.71 from GBP26.31.
Synety raised GBP3.3 million via a placing and open offer in April and has used the money to refocus its strategy towards larger customers, while also working on improving its cash position and delivering sustainable growth.
"I am pleased to report that the early signs of this new strategy are encouraging. Already we are seeing a positive financial impact from our more consultative sales and on-boarding approach and increased focus on larger customers," said Synety Executive Chairman Simon Cleaver.
"This work is likely to continue well into the second half, but already our customers are experiencing a more tailored and improved pre-sales, sales and on-boarding journey. Whilst the new strategy is still in its infancy, the board are pleased with the progress made to date and believe the early indications are encouraging," he added.
Synety shares were down 3.5% on Tuesday morning to 90.20 pence, having initially risen to 104.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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