(Alliance News) - D4T4 Solutions PLC on Monday reported a steep decline in interim revenue, though blamed it on accounting changes and contract timings.
The stock was down 7.6% on Monday morning in London at 198.70p a share.
The Sunbury-on-Thames, Surrey-based data software firm posted a 37% decline in revenue for the six months to September to GBP8.8 million. Pretax profit plunged to GBP847,000 from GBP3.9 million as a result.
D4T4 blamed the fall in revenue on a GBP1.7 million accounting adjustment as well as contract timings, with results for its current financial year set to be weighted towards the second half.
D4T4 said it has a "high level" of contract renewals coming online, as well as strong visibility of new business wins and a "significant" pipeline of further opportunities.
Despite the fall in profit, the company has lifted the interim dividend by 10% to 0.77 pence per share.
"Overall, our business is in a good position and together with a strong pipeline of opportunities makes this an exciting time for the business. Our prospects for the second half are strongly underpinned by a high level of contract renewals from new licences signed during the second half of last year and strong visibility on new contracts due to initiate during the second half," said D4T4.
"This, combined with a significant pipeline of new business in negotiation with existing clients wishing either to increase the footprint of our software or to extend the use of our Hybrid Cloud data platform."
"As a result of this the board remains confident in delivering a solid finish to full-year 2020, in line with market expectations," it added.
By George Collard; georgecollard@alliancenews.com
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