Contract Wins Boost D4t4 Solutions Going Into Second Half

LONDON (Alliance News) - Data company D4t4 Solutions PLC on Tuesday hiked its interim dividend after seeing a rise in profit and revenue in the first half of its current financial year.

D4t4 reported a pretax profit of GBP1.9 million for the six months ended September 30, increased from GBP1.5 million in the same period in 2015. The company's revenue for the period was GBP10.0 million, increased from GBP8.5 million year-on-year.

D4t4 declared an interim dividend of 0.55 pence, increased from 0.50p in 2015.

The majority of the company's revenue came through project delivery, accounting for GBP6.2 million, while recurring income from managed services delivered GBP2.4 million and software licence sales delivered GBP1.5 million in revenue.

D4t4 said that over the first half of the year it won five contracts with a mixture of new and existing customers, expected to contribute approximately GBP5.1 million in revenue in the current financial year and around GBP490,000 per year in recurring revenue in subsequent years.

"D4t4 Solutions trading remains strong and, since the start of the second half of the financial year, we are pleased to report that we have secured a number of additional contracts including one with a leading US retailer and one with a UK based insurance company," said Peter Simmonds, chairman of D4t4.

"In summary, on the back of a strong first half performance coupled with continuing demand from our existing customers and a growing new business pipeline, the board remain confident of being able to deliver further strong growth. Therefore, notwithstanding any unforeseen economic impact of Brexit and the recent US elections, the company expects to deliver trading results for the year ending 31 March 2017 in line with current market expectations," added Simmonds.

Shares in D4t4 were down 0.4% at 137.00 pence Tuesday morning.

By Adam Clark; adamclark@alliancenews.com

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