(Alliance News) - Aferian PLC on Tuesday said it swung to an interim loss in the most recent financial year, but it still has confidence for the second half.
For the six months that ended on May 31, the Leeds, England-based video streaming company swung to a pretax loss of USD811,000 from a profit of USD1.5 million a year before. Revenue was USD44.5 million, decreased by 1.8% from USD45.3 million.
Device revenue dropped by 8.2% to USD32.5 million from USD35.4 million, impacted by "supply chain challenges, including shipping and production delays, caused principally by COVID-19 related manufacturing shutdowns in China," the company explained.
Gross profit fell 5.8% to USD19.4 million from USD20.6 million, as operating loss amounted to USD599,000 compared to a profit of USD1.9 million the year before.
Earnings before interest, tax, depreciation and amortisation amounted to USD5.8 million, down 30% from USD8.3 million the year before. Aferian, however, expects Ebitda margin for the full year to be broadly in line with with the prior year.
Positively, annual recurring revenue amounted to USD8.2 million in the first half of financial 2022, up 49% from USD5.5 million the year before. Aferian reported an exit run rate ARR of USD15.8 million compared to USD13.8 million, representing 14% growth or 26% on constant currency basis.
Chief Executive Officer Donald McGarva said: "We step into the second half of this year with an annual recurring revenue some 14% higher than this time last year. Now, nearly three months into Q3, we continue to have confidence in our second half prospects."
Aferian maintained an interim dividend of 1.0 pence per share.
Looking ahead, the company said it is confident that the order book and improved availability of components will drive higher revenues in the second half. It said it remains confident in achieving results in line with its expectations for the financial year ending on November 30.
Shares were down 2.2% at 132.00 pence each on Tuesday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Aferian (AFRN)