LONDON (Alliance News) - IT services firm Triad Group PLC said Monday its annual profit and revenue declined due to lower contractor numbers in two large private sector accounts.
For the year to the end of March, pretax profit declined by 41% to GBP1.0 million from GBP1.7 million the year before, on revenue that dropped 18% to GBP22.7 million from GBP27.8 million.
In particular the two private account, one at a low margin and the other a low day date, saw reduced contractor numbers, while competition in the public sector has "intensified", with pricing being a major factor when it comes to winning contracts.
"Whilst we are seeing some very creditable performances in national competitions, we are conscious that further improvement is required to improve our winning ratio," said Chair John Rigg.
Triad proposed a final dividend of 2.0 pence per share, bringing the total payout to 3.0p, doubled from 1.5p the prior year.
"There is no sign of the addressable market diminishing, nor our ability to serve it. We have exciting plans to seize this opportunity and to drive our gross margin and profit as we do so. We recognise that there may be some lag as the increased capacity comes on stream, but we have the strength within the business to sustain this essential development phase," Rigg added.
Shares in Triad were down 3.1% at 41.65 pence on Monday.
Triad (TRD)