Arcontech revenue rises but profit drops on market caution

(Alliance News) - Arcontech Group PLC on Monday said profit declined slightly in the first half of the year, though revenue increased, as it said customers are cautious about starting new projects.

The London-based provider of real-time financial market data and services said pretax profit was down 3.8% to GBP518,166 in the six months to the end of December from GBP538,790 a year before.

Shares in Arcontech were down 11% to 96.37 pence in London on Monday morning.

Revenue increased 4.3% in the same period to GBP1.5 million from GBP1.4 million in the prior year.

Administrative costs outpaced this, however, climbing 6.8% to GBP1.1 million from GBP1.0 million in the first half of the 2024 financial year.

Arcontech said it expects growth ahead to be tempered by larger customers downsizing due to changing markets and technology, but it said it is confident in adding new business to the pipeline.

It said it is confident about the future, and the full-year outturn given improvements to market conditions.

Arcontech doesn't pay an interim but said on Monday it expects to continue paying a dividend following its full-year results.

It said its preferred measure of adjusted pretax profit, excluding the release of accruals unrelated to the underlying business, was down 7.5% to GBP494,360 from GBP534,775 in the previous year.

Chair Geoff Wicks said: "The improvements to market conditions we mentioned in our preliminary statement last year have continued and the growth has materialised. We remain cautious as customers are careful about increasing their costs and lead times remain long. However, our pipeline is strong and we are confident about our future and the full year outturn."

By Michael Hennessey, Alliance News reporter

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