(Alliance News) - IDE Group Holdings PLC on Thursday reported a widened pretax loss in 2020 as its Manage and Connect businesses both experienced falling revenue.
Pretax loss for 2020 amounted to GBP21.6 million, widened from GBP10.9 million in the year prior.
The IT managed services provider also posted revenue of GBP24.1 million, a fall of 15% from GBP28.2 million in 2019.
Revenue in IDE's Connect division was GBP13.1 million, tumbling 10% year-on-year from GBP14.6 million as the firm lost more cloud customers.
Revenue in its Manage division was GBP11.5 million, sinking 22% year-on-year from GBP14.7 million. This was largely due to some cyclical variability in its supplies to system integrators.
The Manage business encompasses service lines broadly covering field and site engineering, projects and lifecycle, network monitoring and service desk support. The Connect business services are broadly networking and connectivity, cloud and hosting, and voice/telephony.
Having not declared a dividend the prior year, the company again decided against a dividend for 2020. However, the firm is keeping this policy under review.
Going forward, the business plans to review how best to capitalise on the progress it is experiencing in its Manage business and decide how best its Connect business can contribute to the future success of our combined group.
"Trading in the current financial year remains buoyant in our key Manage business with current financial performance significantly ahead of our 2020 results and reflecting the excellent business relationships that we have developed with third-party system integrators. Our Connect business continues to demonstrate the benefits of the rationalisation programme we commenced in previous years and we can now expect that business at trading [earnings before interest, taxes, depreciation and amortisation levels] to show modest growth in what is a very congested business sector," the company said.
Shares in IDE were down 5.3% at 0.90 pence each in London on Thursday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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