(Alliance News) - IDE Group Holdings PLC on Thursday said its loss narrowed in the first half of 2019, but revenue slipped as some projects and contracts came to an end.
The network, cloud and information technology services provider said pretax loss in the six months to the end of June narrowed sharply to GBP3.1 million from GBP35.8 million, thanks to the non-repeat of a GBP23.7 million impairment charge in the first half of 2018.
Administrative expenses, excluding the impairment, also declined, to GBP5.7 million from GBP12.2 million year-on-year.
Less positively, IDE Group reported a 33% decrease in revenue in the first half to GBP14.7 million from GBP21.8 million due to certain "significant" projects coming to an end last year and during the first half of 2019.
Furthermore, the company said there has been "a general level of churn" across the business, in particular within the cloud and networks divisions.
"In order to address this going forward, we continue to enhance our cloud platform and offering and are developing a joint value proposition with Equinix Inc, a data centre and co-location provider. Furthermore, we continue to close down legacy networks in order to improve service and profitability," said Executive Chair Andy Parker.
IDE Group shares were trading 12% lower on Thursday in London at 4.95 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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