Geong sees FY ahead of expectations

Chinese internet software solutions provider Geong International said full year net profit after tax is expected to be ahead of market expectations.Total revenues for the year ended 31 March 2011 are expected to be around £11m compared to £12.5m the previous year, including SaaS revenue of approximately £3m, up from £1.7m before.Gross margin rose above 50% compared to 46% a year ago while the order book at 31 March 2011 increased to £15m compared to £14m a year ago."The group's business transformation has further taken hold," it said in a company statement.In partnership with IBM/Oracle, Geong said it won 20 new clients during the year offering its new product, Smarter Platform.The financial year 2012 has started well and the management team is confident of further progress being achieved, it added."As we continue the transformation of our business towards higher margin products and services, we will seek to grow the revenue both organically and by complementary bolt-on acquisitions."Geong today raised £2.5m through a share placing. CJ