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LONDON (Alliance News) - Intercede Group PLC Tuesday said it made a pretax loss in its recently-ended financial year, as revenue fell due to a number of market-related delays and it booked costs associated with investments.
The cybersecurity company reported a pretax loss of GBP1.7 million in the year to March 31, compared with a pretax profit of GBP395,000 the year before, as revenue fell to GBP8.8 million from GBP9.8 million.
It said a weak start to the year followed on from a stronger-than-expected end to the previous year, but was unable to recover due to US government funding constraints causing a decline in North American revenue, slower progress from a number of existing customers on large scale modernisation projects, the delayed release of two key security standards in the US, and a slower-than-anticipated availability of TEE capability on OEM handsets.
Coupled with investment costs relating to staff and research and development, this led to a loss, Intercede said.
However, Intercede said it has made good progress against its strategic objectives by remaining focused on achieving short-term goals, while simultaneously investing in longer-term opportunities. It said that the longer-term outlook for the company is encouraging.
"Intercede's strategy is to further grow its identity and credential management business in its historically strong markets and to reinvest in the significantly higher growth opportunity that is anticipated in the mobile and Internet of Things markets," Chief Executive Richard Parris said in a statement.
"It has become clear that we operate in a market where passwords are not enough and, because of this, we believe the potential for growth is huge. We have never been better placed to take advantage of the imminent need for trusted digital identities and trusted applications across a wide range of corporate, government and consumer markets. We expect the results of our progress in developing this opportunity to become increasingly apparent in FY2016 and beyond," Parris added.
Shares in Intercede were trading down 6.2% at 101.80 pence Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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