EU supply paints mixed picture for full year

(Sharecast News) - It was a mixed picture for EU Supply on Friday as the e-procurement software provider said revenues for the year to the end of December 2018 are expected to be slightly below market expectations, but pre-tax profit should be materially above.In an update ahead of its final results in April, the company said it expects revenue to grow by around 10% for the year to £5.1m. The group expects to post a maiden pre-tax profit of £0.4m versus a loss of £0.2m in 2017.EU Supply said cash at the end of December was £0.83m compared to £0.65m the year before.Significant development resources were allocated in the second half of 2018 to build new services for buyers and suppliers, which the company said will underpin its recurring revenue growth in the medium-term. In addition, the development of its micro procurement solution to existing and new customers is proceeding to plan and is expected to further increase recurring revenue growth.Chief executive officer Thomas Beergrehn said: "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 £5m."We now have a profitable base and solution platform that will enable us us to deliver our growth plan."At 0945 GMT, the shares were up 2.3% to 11p.