(Sharecast News) - Data solutions provider D4T4 Solutions revealed on Wednesday that it had swung to an adjusted pre-tax loss in the six months ended 30 September despite reporting improved revenues.
D4T4 Solutions said interim revenues were up £500,000 to £8.1m and annual recurring revenues had risen from £10.4m in the first half of 2021 to £15.8m in 2022.
However, D4T4 said it fell to an adjusted pre-tax loss of £1.3m, down from a pre-tax profit of £100,000 at the same time a year earlier, as gross margins contracted from 53.2% to 38.3%
With that said, chief executive Bill Bruno said D4T4's year-to-date contract progress and "highly visible pipeline of opportunities" meant the firm was "confident" of achieving full-year expectations and delivering another year of growth in ARR.
Elsewhere, D4T4 also said on Wednesday that it had secured new contracts with an unnamed "top ten global bank" worth a combined value of $6.0m.
The first contract, a new three-year enterprise license agreement, converts many of the existing client's subsidiaries and divisions from perpetual licenses to term licenses and allows the bank to easily expand the platform to new markets, while the second contract was an upsell of a production license for Celebrus FDP to a different division within the bank, with the client set to leverage this license on a pilot basis prior to an expected global expansion to relevant markets.
The two contracts have a combined total contract value of $6.0m and incremental annual recurring revenue of $600,000 per annum.
As of 1335 GMT, D4T4 shares were down 3.75% at 243.50p.
Reporting by Iain Gilbert at Sharecast.com
