LONDON (Alliance News) - Escher Group Holdings PLC said Tuesday that it is trading in line with expectations for all of 2014, though it said revenue and earnings for the recent half year will be behind the previous year.
The software provider expects to post revenue of USD11.1 million for the six month ended June 30, down from USD12.9 million in the same period a year before, hit by lower services revenue as a major contract moves to roll-out phase. In the first half, the company recognised USD1.8 million of the outstanding USD6 million in licensing revenue from this customer, and it expects to recognise the remainder in the second half.
Adjusted earnings before interest, tax, depreciation and amortisation is expected to be reported down at USD1.6 million in the first half from USD2.4 million a year before, as the company invested in new product areas.
Escher had net debt of USD3.5 million as at June 30, compared to USD4.6 million a year before.
The company said its postal solutions business continued to provide a strong foundation for its multi-platform, multi-device services, citing a recent contract win in the United Arab Emirates. It continues to invest in its digital and interactive services business, and said it expects to generate growth opportunities in its retail, enterprise mobile, mobile commerce, e-Government and community-based message services.
"We are set to benefit from our customers increasing focus on digital commerce and their need for more points of presence, more flexible software solutions and an increasing range of additional services," said Chief Executive Liam Church in a statement.
Shares in Escher were trading down 1.8% at 297.00 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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