LONDON (Alliance News) - E-procurement software provider EU Supply PLC said on Friday it expects to report a maiden pretax profit for 2018, above market expectations.
For the year, pretax profit is anticipated to be GBP400,000, swinging from a loss of GBP200,000 for 2017.
Revenue however is set to be below market expectations at GBP5.1 million, though this is up 8.5% from GBP4.7 million the year before. Around 70% of the revenue for 2018 is expected to be of a recurring nature.
This was after EU Supply in the second half made a big effort to build new services for buyers and suppliers, with these expected to underpin EU Supply's recurring revenue growth. "The development of the company's micro procurement solution to existing and new customers is proceeding to plan and is expected to further increase recurring revenue growth," it said.
EU Supply cash position as at December 31 was GBP830,000, up from GBP650,000 in 2017.
"I am pleased to report the group's first profitable year before tax. This was achieved in a period of increased development activity during which revenue, all of which was organic, continued to grow, and for the first time exceeded GBP5 million. We now have a profitable base and solution platform that will enable us us to deliver our growth plan," said Chief Executive Officer Thomas Beergrehn.
Shares in EU Supply were up 2.3% at 11.00 pence on Friday.