Microgen sees full-year earnings ahead

7th Jul 2009 08:04

Software group Microgen expects earnings for the year to be ahead of current market forecasts."Despite the continuing difficult market environment, the first half of 2009 is anticipated to be in line with the board's expectations, but, as a result of the strong Microgen Aptitude Solutions Division (MASD) performance, and subject to contracts being finalised, earnings for the year are anticipated to be ahead of current market expectations," said the group.The operating loss for MASD in the first-half has significantly reduced compared to the prior year, but the group anticipates that the unit will be delivering a strong second half.Microgen's Billing Services Division and Financial Systems Division are trading in line with expectations. These divisions have high recurring revenue and hence remain profitable, high margin businesses with strong cash flow, it added.Cash at 30 June was £15.2m, compared to £14.7m at 31 December 2008, after repayment of £1.3m of the loan associated with the freehold property and payment of the final dividend of £1.2m.