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(Alliance News) - Software Circle PLC on Monday reported an increased loss as costs increased faster than revenue, but highlighted exclusive talks with acquisition targets.
Manchester-based printing and software company said in the six months to September 30, pretax loss widened to GBP1.9 million from GBP503,000 a year prior.
Revenue rose 41% to GBP8.2 million from GBP5.8 million. Staff costs increased 54% to GBP2.5 million from GBP1.6 million, while depreciation and amortisation costs increased to GBP1.8 million from GBP440,000. Costs from the impairment of assets stood at GBP1.4 million compared to no such cost a year prior.
Financial expenses ballooned to GBP979,000 from GBP117,000.
The company declared no dividend, unchanged from a year ago.
Looking ahead, the company said it is in exclusive discussions with acquisition targets with a collective turnover of around GBP3.6 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP1.2 million.
"Although the dip in revenue from our Nettl Systems business slightly dents our revenue run-rate, overall, trading and profitability remains in line with management expectations. Our search for vertical market software businesses continues as we look to quickly, but effectively, deploy the funds from our recent fundraise on acquisitions that meet our criteria. In that regard, our deal flow continues to look healthy," Software Circle said.
Software Circle shares were flat at 13.00 pence each on Monday afternoon in London.
By Tom Budszus, Alliance News slot editor
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