Current trading and outlook22 Feb 2019 09:43
The Board remains focused on returning the company towards profitability and has continued to manage the Group's working capital tightly during the Period. The cost reduction policy implemented during 2018 has continued to be effective in reducing costs. The six-month period ended December 2018 was another challenging period for the Group given the continuing unpredictability on the timing of conversion of the sales pipeline into sales orders.
The sales pipeline currently stands at £10.6m. This pipeline includes both sales opportunities with an order date in the future and those where we have been asked to quote but where no order date has been indicated by the client. Order arrival dates are estimations given to the Company by its clients.
The management of the size of the sales pipeline, its conversion to sales orders and maintaining a healthy gross margin are key performance indicator for the Group as it gives us an indication of the level of business that could be generated over the following 24 months.