LONDON (Alliance News) - Publishing firm Ingenta PLC on Monday swung to an annual loss, as revenue declined with a focus on "higher quality" contracts.
Ingenta posted a pretax loss of GBP1.2 million for 2018, after a pretax profit of GBP800,000 the year before, as revenue fell 18% to GBP12.0 million. Over 70% of revenue, Ingenta said, is "highly visible" and recurring.
The loss was caused by both the revenue decline as well as a rise in administrative costs related to a business reorganisation.
Ingenta proposed dividend of 1.5 pence per share for the year, flat on the year before.
"Our strategic move away from product silos towards a more client centric structure is starting to produce real results, and we look forward to 2019 with great enthusiasm," said Chief Executive Scott Winner.
"Our business is now leaner and focussed on delivering first class services for all our customers with significantly improved positioning for the next stage of our growth."
Looking ahead, Ingenta said there is "renewed optimism" as its reorganisation begins to take effect.
"The board believe the business is now significantly de-risked, producing a higher quality, cash generative earnings stream whereby the fixed costs of the business are met by its highly visible recurring revenues," said Ingenta.
"Combined with this, the group's efforts to strategically build its sales pipeline are now paying off and we hope to capitalise on this momentum through our refreshed sales targets for 2019."
Shares were untraded on Monday morning, last quoted at a price of 70.00 pence each.
Ingenta (ING)