LONDON (Alliance News) - Electric Word PLC Monday said it is currently trading in line with expectations as it posted a widened pretax loss for its first half.
For the half year to end-May, the company posted a pretax loss of GBP275,000, widened from a pretax loss of GBP197,000 a year before, as revenue rose slightly to GBP5.9 million from GBP5.8 million, due to higher central costs resulting from moving offices in March. It expects central costs in the second half of the year to be lower.
Electric Word has been streamlining its operations, agreeing the sale of its Radcliffe Solutions and Radcliffe Publishing business for over GBP1 million in cash during the half year. For the year to end-November 2014, these business contributed an adjusted earnings before interest, tax, and amortisation loss of GBP400,000, and as a result the sale of the businesses enhances profit.
The company said that as it enters its fourth quarter the company is expecting a continued strong performance from its Sport and iGaming businesses, and it will continue investment in product development in its Education and Health businesses.
"The group is in a strong position at the mid-year, having increased our focus and strengthened our balance sheet through improved cash generation and the disposal of non-core businesses. We have a clear plan to drive growth through a new generation of premium, digital subscription products and continue to invest in the resources and expertise we need to achieve that," said Chief Executive Julian Turner in a statement.
Shares in Electric Word are untraded Monday morning, it last closed at 3.50 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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