Arcontech sees good growth but board not quite satisfied

23rd Aug 2018 14:07

(Sharecast News) - Real-time financial market data processing and trading product provider Arcontech issued its final audited results for the year ended 30 June on Thursday, reporting an improvement in revenue to £2.52m from £2.31m last year.The AIM-traded firm said its adjusted profit before tax was £0.63m, rising from £0.44m year-on-year, while its profit before tax was £0.58m, compared to £0.37m.Its cash balance at year-end stood at £3.21m, up from £2.64m 12 months earlier, with fully-diluted earnings per share surging to 7.09p from 3.68p.The board declared a final dividend of 1.3p per share, up from the 1p distribution last year.On the operational front, Arcontech said it secured two clients for the new desktop software solution, and had proof-of-concept trials at six more Tier 1 banks.It claimed to have secured its first client in Africa, while it made a continued investment in sales and marketing.There was also a "healthy injection" of new contracts through expanding its server-side infrastructure solutions and the new desktop software solution to existing customers, leading to "strong" cash generation and recurring revenue."Arcontech is a well-run business where costs, including continued product investment, are well controlled such that increases in revenue materially improve profitability," said chairman Richard Last."Our focus is, therefore, on winning new business."Last said that while the board believed the opportunities for increased sales existed, the sales cycle was "unpredictable" and remained longer than the directors would like."Our prospects are positive, albeit they need to be tempered against uncertainties in the investment banking and finance sectors, as a result of the low interest rate environment and issues following Brexit."