7th Apr 2014 12:39
LONDON (Alliance News) - NetDimensions (Holdings) Ltd Monday raised its full-year dividend despite seeing a widened pretax loss, as it upped its headcount and increased investment in 2013.
NetDimensions posted a total dividend of 1.0 cent, up from 0.8 cent in 2012.
The company posted a pretax loss of USD4.9 million, widened from USD201,425 in 2012, despite seeing revenue rise to USD16.2 million from USD13.8 million, as it increased investment as part of its three-year business plan. It launched the plan last May.
NetDimensions invested USD4.9 million during the year, including USD3.4 million to increase headcount. NetDimensions added 37 new hires during the year, taking its total employees to 167. It also appointed several new senior executives during the year, including a new Chief Financial Officer and chief sales officer.
"The next hiring will be focused on the technical development side, the research and development, the support people and the professional services," Chief Financial Officer Matthew Chaloner told Alliance News.
"We're in the final stages of putting together a business plan to expand professional services globally," Chaloner said. "We're reorganising that kind of regional level where we used to have separate teams into a global business unit."
NetDimensions said that the investment phase of its three-year business plan had been substantially completed in 2013, and it would now maintain focus on high consequence industries, meaning those that are heavily compliant and heavily regulated.
There will be some further investment costs, although Chaloner said that this would not be "anywhere near" the GBP4.9 million spent in 2013.
The company expected to post a big loss in 2013 as a result of the business plan, and expects a smaller loss in 2014. It will look at making a return to a small profit in 2015.
Revenue was boosted by the company's new healthcare division NetDimensions Healthcare, established March 1 following its acquisition of eHealthcareIT, which posted revenues of USD1.3 million for the year.
The company's performance also benefited from an increased focus on direct sales, leading to a larger average first-year deal size with new clients, up to USD101,000 from USD71,000.
NetDimensions sees the US healthcare market as a big growth opportunity. Chaloner explained that with the arrival of the affordable care act, commonly dubbed 'Obamacare,' it is becoming more heavily regulated which drives demand for products such as those offered by NetDimensions.
As a result, the company is considering further expansion in this market.
"We would like to look at collective acquisitions to broaden our offering to the US healthcare industry," Chaloner said.
The company expressed optimism for 2014 following the completion of the investment phase, saying it will continue to explore new markets and opportunities for expansion with its bolstered management team.
Shares in NetDimensions were trading down 1.4% at 73.00 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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