Escher Group Holdings Share News (ESCH)

Escher Group said sales declined in the first half of the year due to timing of a major contract, while the bottom line was hit by higher investment.The company, which provides software to the postal industry, said group revenue is expected to have totalled $11.1m in the six months to June 30th, down 14% on the $12.9m reported the year before.Escher explained that services revenue was affected by the transitioning of a major contract from a development and customisation phase to a roll-out phase, which will lead to the recognition of license and maintenance revenues.Just $1.8m of the outstanding $6m licensing revenue from this particular customer was registered in the first half; the remainder should come later in the year.Adjusted earnings before interest, tax, depreciation and amortisation fell by a third to $1.6m, reflecting increased investment in new product areas and its core postal point-of-service software."Overall, the group is trading in line with the board's expectations for the current financial year," the company said.Escher was trading 3.5% lower at 292p by 15:19 on Tuesday.BC