LONDON (Alliance News) - Nasstar PLC Monday expressed confidence in meeting its full-year expectations for 2014, underpinned by trading in the half year to end-June.
The hosted-desktop cloud-computing provider said it had made good progress integrating its UK business and e-know.net, which had led to the subsidiary generating its first positive earnings before interest, tax, depreciation and amortisation in June. It expects this contribution to be sustainable for the rest of the year and beyond.
Nasstar acquired e-know in January.
The company has been focusing on restructuring the UK business, consolidating costs, introducing new pricing policies, increasing the sales prices to current customers, and exiting from or renegotiating loss-making contracts. It has introduced a direct go-to-market strategy, shifting focus away from its lower margin reseller channel.
e-know won new contracts, including a "key strategic client" in law firm Wiggin LLP. e-know has performed in line with management expectations, Nasstar said, continuing to execute its growth strategy.
Outside of this business it consolidated its number of data centres to four from six by the end of May.
Nasstar said it will announce its interim results on September 15.
Shares in Nasstar were trading down 1.5% at 8.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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