9th Sep 2014 08:18
LONDON (Alliance News) - Synety Group PLC Tuesday warned its revenue for the full year will be below previous guidance, although it maintained its growth expectations for the following year, and it posted a narrowed pretax loss for the half year to end-June.
The cloud-based software and communications company posted a pretax loss of GBP3.0 million, narrowed from a loss of GBP3.8 million in the previous year, as revenue rose slightly to GBP608,000 from GBP547,000, and it saw lower administrative expenses and exceptional costs.
Synety said that whilst licences, end users and annualised recurring revenue grew strongly, non-recurring sales of hardware and other one-off fees were softer, and some growth in recurring revenue came through later then expected due to the longer on-boarding periods of bigger customers.
Although this means that revenue will be reduced for the full year, margin compensation and its current annualised recurring revenue base mean that its pretax loss for the year is tracking in line with expectations, it said.
The company said that it had made investments in the first half, doubling its UK sales team and launching its Boston sales office. This investment has helped added a further GBP287,000 in annualised recurring revenue in July and August, the company said. Additionally, it has seen increasing recurring revenue per user as demand grew for its CloudCall Contact Centre service.
"The second half of the year has started very well and annualised recurring revenue at the year-end is expected to be on target. The board's growth expectations for next year remain unchanged," said Executive Chairman Simon Cleaver in a statement.
Synety also said Tuesday that it had signed a partnership deal with Oracle to integrate its CloudCall software into its Oracle Cloud Sales product. No financial details were disclosed. Synety said that the integration would give it the potential to integrate CloudCall with other Oracle products.
Shares in Synety were trading down 15% at 188.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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