LONDON (Alliance News) - Actual Experience PLC shares fell on Wednesday after a rise in revenue failed to prevent the company's annual loss widening due to higher costs and a lower gross margin.
Actual Experience shares were trading down 4.8% to 250.0 pence per share on Wednesday morning.
The analytics as a service provider reported a wider GBP2.2 million pretax loss for the year ended September 30 from the GBP1.3 million loss reported a year earlier even as revenue rose to GBP700,449 from GBP567,469.
Despite the revenue rise, Actual Experience's gross margin was squeezed, and the company yielded a gross profit of GBP193,266 compared to GBP318,238 the year before. Higher administrative costs of GBP2.6 million from GBP1.9 million also contributed to the wider loss.
"We have made significant progress across all aspects of our business this year. While the financial results show growth, the real success of the year was the progress made in our commercial relationships with major channels, with two important contracts signed during the year and a further agreement announced today," said Chief Executive Dave Page.
Actual Experience on Wednesday announced a "significant order" to white label its service for an unnamed leading US-based technology company.
Actual Experience said the customer in question reaches a significant number of global businesses and end users and, given its reputation and scale, believes that this relationship has the potential to become a significant channel partner.
"We're delighted this customer, a global leader in its field and with which we have trialled and proved our solutions over a number of years, is now moving forward with a white labelled capability to analyse digital quality for its customers," said Chief Executive David Page.
A white label is a product or service where the provider purchases a fully supported product from another source, then applies its own brand and identity to it.
"Actual Experience's ability to analyse an organisation's digital supply chain will ensure that the quality of digital products and services delivered to customers and staff is always transparent to leaders across both managed services and the business," said the company.
"In this financial year we will continue to invest in people and technology, develop further sales channels, both channel and direct and also expect to see a more meaningful revenue contribution from our successes to date. We look to the future with confidence," said Page.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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