(Alliance News) - Actual Experience PLC said on Friday its end of year trading had been hit by Covid-19 as it makes a pretax loss but maintains it has still made "good progress".
Shares in Actual Experience were down 41% at 33.00 pence on Friday midday in London.
For the year ended September 30, the Bath-based management consulting services company said it suffered a pretax loss as a result of its ongoing investment in technology, sales, and marketing functions. In the previous financial year, Actual Experience reported a pretax loss of GBP5.0 million.
Actual Experience reported revenue of GBP1.7 million, down 11% from GBP1.9 million from the previous year. Looking forward, the company said it expects to begin to benefit from the ramp up of revenue being generated by new business wins, set against the probability that a long standing contract that relies on its legacy offering will not renew in the coming months.
Following its placing conducted in January, Actual Experience said it retains a solid financial position with year-end net cash standing at GBP8.2 million, more than tripling from GBP2.7 million in 2020.
Actual Experience added that it had reduced cash outflows from operating activities to GBP3.7 million from GBP3.9 million the previous year.
Actual Experience said that "good progress" had been made during the year despite its sales cycle remaining lengthy. The company said that its efforts to reduce this issue had been hampered by the pandemic and the resultant lengthening of procurement processes.
Chief Executive Dave Page said: "Going into 2022, our focus will be continuing to convert the 15 large scale opportunities to ongoing [continuous improvement service] wins. Through the direct and partner sales channels we will continue to develop similar new opportunities from our funnel, delivering more new business wins to generate long term, profitable contracted revenues. We are excited by the prospects in our pipeline and the immediate opportunities in front of us, notwithstanding the challenge of lengthy sales cycles, which we are working with our customers to reduce."
By Heather Rydings; heatherrydings@alliancenews.com
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