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LONDON (Alliance News) - Arcontech Group PLC Wednesday said it made a profit in its recently-ended financial year, having previously suffered a loss, as it benefited from cost savings and it secured new business from existing customers.
Arcontech, which provides financial market data processing and trading services, said it made a pretax profit in the year ended June 30 of GBP243,660, after it made a pretax loss of GBP35,565 the year before. It said that staff changes resulted in cost savings, which helped profit, although it warned it does not expect the same uplift from cost savings in the current year.
Revenue increased 7.6% to GBP2.13 million from GBP1.98 million, which Arcontech said reflected new business from existing customers, as it expanded its customer base with new business from a US-based international investment bank and a regional German bank.
Arcontech said it will not pay a dividend due to its "negative distributable reserves", but said it intends to seek court approval to redesignate its reserves so that it can pay dividends.
"Arcontech has a healthy pipeline of qualified prospects and although the lead time to a sale continues to be unpredictable, once a sale is completed we invariably have a long and positive relationship supported by annual recurring licence fees. Despite the challenges presented in the year under review, with a broadening product range and customer base, we are both positive and confident as to Arcontech's prospects," Chairman Richard Last said in a statement.
Shares in Arcontech were trading up 4.8% at 0.209 pence Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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