LONDON (Alliance News) - Procurement software company EU Supply PLC on Wednesday said its pretax loss narrowed in the first half of 2015 as lower administrative expenses burnished a marginal rise in revenue.
The company's pretax loss for the half to the end of June was GBP921,000, compared to a GBP1.5 million loss a year earlier. Revenue for the group was up marginally to GBP1.2 million from GBP1.1 million, but administrative expenses were reduced to GBP2.1 million from GBP2.6 million.
In constant currencies, revenue for the company grew 25% in the half, while its recurring revenue now represents 77% of its total sales. The group has been focusing on higher-margin sub-sectors and businesses due to fierce competition in some mainstream public sector segments.
"Trading in the first half of 2015 was in line with the board's expectations. Foreign exchange movements had a negative impact on revenues, but a positive effect on costs leading to a reduced loss being reported," said Chief Executive Thomas Beergrehn.
"While on a constant currency basis the board is confident of meeting its expectations for the year ending December 31, 2015, it is mindful of the recent further strengthening of sterling against the euro, Swedish krona, Danish krona and the Norwegian krona, which if persists in the remainder of the year would impact both the company's revenue and costs and result in the company reporting a more reduced loss than anticipated," Beergrehn added.
Shares in EU Supply were untraded Wednesday morning, having last traded at 8.50 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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