LONDON (Alliance News) - IT service provider adept4 PLC on Wednesday said its interim results were not representative of underlying trading, as its pretax loss widened on higher operating expenses in its first set of interim results since it refocused its business.
The results come one month after Pinnacle Technology Group PLC said it agreed to acquire adept4 Ltd, funded by a loan notes issue, and changed its name to adept4, after the group shifted its focus towards higher margin services through a buy and build strategy.
In the interim results on Wednesday, adept4 said it generated GBP830,577 in revenue for the six months to March 31, compared to no revenue for the same period a year earlier, but said a rise in operating expenses to GBP1.1 million from GBP205,431 meant its pretax loss widened to GBP385,175 from GBP206,349.
The figures, however, related to continued operations, meaning not its Pinnacle business which it sold to Chess ICT Ltd in May for GBP2.8 million, and also excluding the RMS Managed ICT Security Ltd business which it sold in April for GBP45,000, and its 40% stake in voice over IP software Stripe 21 which it sold for GBP400,000 in March.
In its discontinued operations, in which the disposals come under, revenue for the six months came in at GBP3.7 million from GBP4.0 million for the same period a year earlier, but operating loss narrowed to GBP266,166 from GBP343,437.
Along with these disposals, adept4 purchased Ancar-B Technologies Ltd, which provides IT support services, and Weston Communications Ltd, which provides telecoms and IT support services, both in February.
adept4 said it had now completed the turnaround of the company and expected the three acquisitions it made over the interim period to be integrated into the business, so it could scale its "IT as a Service" proposition.
"A consequence of all the above activity is that the numbers reported in this interim condensed financial statement are not representative of the new underlying trading business - we now have a trading business with healthy gross margins, high recurring revenues and positive cashflows. Our focus now is on the integration of our acquisitions and scaling our proposition to become a leading UK supplier of IT as a Service.," said Executive Chairman Gavin Lyons.
Shares in adept4 were up 2.6% at 6.80 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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