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GRC billings top expectations, costs 'carefully controlled'
22nd Jun 2020 08:07
(Sharecast News) - Information technology services group GRC International said on Monday that year-to-date billings were almost 20% ahead of expectations.
GRC, which had allowed for a "substantial drop" in revenues as part of its Covid-19 pandemic response plan, stated it was trading ahead of forecasts thanks to a strong rebound in May and that full-year revenues were projected to come in between £14-14.5m.
The AIM-listed group also highlighted that costs had been "carefully controlled" throughout the coronavirus-fuelled lockdowns and were actually lower than anticipated. As a result, GRC said its cash position was better than it allowed for.
Website traffic and transaction volume both started a sustained rebound from April.
GRC noted that the current "highly volatile climate" left it confident that security business continuity and privacy compliance projects would continue to be critical for clients.
"Moreover, the widespread shift to remote working creates new vulnerabilities for clients and new opportunities for our products and services," added GRC.
However, as the economic impact of Covid-19 continues to evolve, GRC expects that it may continue to impact business development and new business.
"Even as lockdown restrictions begin to be eased, the impact on business development remains unquantifiable and therefore the Board is not in a position to give future financial performance guidance until the economic situation can be more clearly assessed."
As of 1135 BST, GRC shares were down 1.75% at 28.0p.
GRC, which had allowed for a "substantial drop" in revenues as part of its Covid-19 pandemic response plan, stated it was trading ahead of forecasts thanks to a strong rebound in May and that full-year revenues were projected to come in between £14-14.5m.
The AIM-listed group also highlighted that costs had been "carefully controlled" throughout the coronavirus-fuelled lockdowns and were actually lower than anticipated. As a result, GRC said its cash position was better than it allowed for.
Website traffic and transaction volume both started a sustained rebound from April.
GRC noted that the current "highly volatile climate" left it confident that security business continuity and privacy compliance projects would continue to be critical for clients.
"Moreover, the widespread shift to remote working creates new vulnerabilities for clients and new opportunities for our products and services," added GRC.
However, as the economic impact of Covid-19 continues to evolve, GRC expects that it may continue to impact business development and new business.
"Even as lockdown restrictions begin to be eased, the impact on business development remains unquantifiable and therefore the Board is not in a position to give future financial performance guidance until the economic situation can be more clearly assessed."
As of 1135 BST, GRC shares were down 1.75% at 28.0p.