Deal delays dampen Patsystems
Article Date: Aug 07 2008Electronic trading technology specialist Patsystems blames delays in closing new business for a £104,000 interim loss.
The AIM-quoted company increased turnover six per cent to £8.3 million in the six months to June. But depreciation and amortisation costs of £785,000 and share compensation expenses of £228,000 helped produce a first half pre-tax loss of £104,000, against a £639,000 pre-tax profit in the first half of 2007.
Chairman Richard Last claims a ‘solid first half performance considering the well-documented challenges within our market place’. Recurring revenue was 96 per cent of turnover.
Last argues that ‘sales wins have crystallised later in the year than we had envisaged’. However, he maintains ‘the sales success we have achieved in the last two months, as well as our strong order pipeline, means we remain confident of achieving current market expectations’.
With a net cash inflow from operations up £210,000 to £767,000, London-based Patsystems is increasing the interim dividend marginally from 0.12p to 0.126p a share. During the first half year, the company was picked to provide trading and risk management technology to the new Hong Kong Mercantile Exchange and had its trading system chosen in Asia by Ascot Financial Services, Guotai Junan Futures and GK Goh.
Floated at 10.76p five years ago, Patsystems shares reached 32.75p in 2007. They now trade at 23.75p, valuing the company at £42.5 million.
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