LONDON (Alliance News) - Arcontech Group PLC said on Thursday it posted a rise in profit ahead of expectations for its recently ended financial year, due to revenue growth on new licence sales.
Arcontech, which provides products for real-time financial market data processing, reported a pretax profit of GBP575,632, up 54% from GBP373,263 the year before, as revenue grew by 9.0% to GBP2.5 million for the year to the end of June.
Revenue growth was due to added annual licence sales to existing customers, with two new clients signing up to become paying users of Arcontech's desktop software solution, and renewing a multi-year agreement with an existing customer.
The group declared a dividend of 1.30 pence per share, up 30% from 1.00p the year before.
"Arcontech is a well-run company where operational gearing is such that increased sales will have a material positive impact on our profitability. We have added additional sales resource to increase our focus on new business growth and while this will add to our cost base we believe it will generate positive results in the near future. Our pipeline of prospects remains positive, albeit they need to be tempered by the traditionally long and complex sales cycles that are an enduring facet of our business," said Chairman Richard Last.
Shares in Arcontech Group were up 0.8% at 118.45 pence on Thursday.
Arcontech Group (ARC)