LONDON (Alliance News) - Arcontech Group PLC Monday reported a narrowed loss in the year to end-June, as it saw revenue rise and an exceptional cost did not recur.
Arcontech is a software and services company. It posted a pretax loss of GBP35,565, narrowed from a pretax loss of GBP501,744 in the previous year, as revenue rose to GBP2.0 million from GBP1.8 million. In the previous year it posted an exceptional administrative expense of GBP160,994.
Arcontech said that the rise in revenue was less than it had hoped to achieve, partly due to the continued lengthening of sales cycles, as customers prioritise areas that are subject to greater regulatory focus, such Libor rates, rather than the areas addressed by its products. Arcontech's products provide real-time market data solutions.
The company did not declare a dividend, but noted that when it moves to sustainable profitability, it intends to seek court approval to re-designate its reserves and enabled it to pay dividends.
The company said that it believes it is well placed to continue revenue growth, citing its lower cost base and improved product offering. Whilst its sales prospects are "significant", it said the timing of their conversion into actual sales orders is "extremely difficult to predict".
"We remain convinced that opportunities for the sale of our products to international investment banks, central banks and other financial institutions remain strong," the company said.
Shares in Arcontech were trading down 2.5% at 0.166 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Arcontech Group (ARC)