LONDON (Alliance News) - EU Supply PLC, the AIM-listed e-procurement software provider, on Thursday said it's wary that the United Kingdom's referendum on whether to remain a member of the European Union or leave could hit the value of the pound and the company's profitability.
"In the face of competitive market conditions, the board has determined to focus on establishing a profitable platform for growth into 2017 and beyond. Progress on both further revenue growth and cost reductions has been encouraging in the first quarter of 2016," Chairman David Cutler said in a statement.
The chairman said overall trading is "broadly in line" with management expectations, with double-digit growth in revenue during the first quarter of 2016. However, he said costs were "negatively affected" by the weakening of the pound in the quarter.
"With the support of the group's dedicated and skilled staff, the Board is confident in achieving monthly run rate profitability during the current year thereby providing the platform for profitable future growth in a variety of product and market sectors," Cutler said.
However, any further weakening of sterling, perhaps in the event of the UK voting to leave the EU, would increase headwinds faced by the company, the chairman said.
His comments came as EU Supply said its pretax loss narrowed to GBP1.5 million in 2015, from GBP1.7 million in 2014, as revenue rose to GBP2.8 million from GBP2.5 million and administrative expenses fell to GBP4.3 million from GBP4.6 million.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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