(Alliance News) - Technology services company Panoply Holdings PLC on Monday said it swung to first-half profit helped by revenue rising by a third on growth in its public sector unit.
In the six months to September 30, revenue rose by 33% year-on-year to GBP13.4 million from GBP10.1 million. The company swung to a pretax profit of GBP700,000 from a GBP300,00 loss last year.
During the period, the company acquired public sector-focused digital services designer FutureGov Ltd for GBP11.8 million in cash and shares. It's Panoply largest acquisition to date.
Panoply added: "The pivotal acquisition of FutureGov, completed in June 2019, means that the group now has an integrated end-to-end digital transformation offering in public services. This marks the creation of a true challenger brand in a category that will have a total addressable market of GBP20 billion by 2025."
Public sector revenue surged by 72% to GBP7.9 million from GBP4.6 million last year.
The firm has also reported contract wins in the commercial sector, including dog food firm Tails.com, a Nestle SA unit, and private US conglomerate Cargill Inc. Cargill trades in industries including agricultural services, pharmaceuticals and has a financial services arm.
Commercial sector trading contributed GBP5.5 million in revenue during the half, down 1.8% from GBP5.6 million last year.
Current trading is "robust", Panoply said, despite Brexit uncertainty.
"We expect spending patterns to return to normal or stronger once we have a clearer political backdrop. Both of the main political parties have committed to substantial further expenditure, which bodes well for the future," Panoply said, referring to the UK's general election this week.
The company added: "We have a sales backlog of GBP25 million committed, GBP12.8 million of which is expected to fall in the current financial year."
It is the first time the company has reported interim results since its GBP5.0 million IPO in December last year.
Shares in the firm were 5.2% higher at 78.90 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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