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Profits fall as revenues rise at Arcontech
23rd Feb 2021 16:05
(Sharecast News) - Financial market data provider Arcontech reported a 4.7% improvement in turnover in its interim results on Tuesday, to £1.54m.
The AIM-traded firm said its profit before tax was down 8% year-on-year for the six months ended 31 December, however, at £0.51m, which it put down to the full cost of its investment in the sales team.
Annual run-rate of recurring revenues at period end were ahead 4% at £2.98m.
The company reported net cash of £5m as at 31 December, making for an increase of £0.6m over the prior year.
Arcontech's board said at this stage, it was expecting profit before tax for the year ending 30 June to be in line with market expectations.
"The board is pleased with Arcontech's progress in the first half of the year," said chairman Geoff Wicks.
"While the effects of the Covid-19 pandemic have continued to overshadow the market we have grown revenue with the addition of an important new customer and a significant upgrade to an existing tier one customer."
Wicks said that at the same time, the company maintained good profit levels after investing in future growth.
"We believe we are in a good position to accelerate growth once market conditions improve."
At 1300 GMT, shares in Arcontech were down 12.53% at 164p.
The AIM-traded firm said its profit before tax was down 8% year-on-year for the six months ended 31 December, however, at £0.51m, which it put down to the full cost of its investment in the sales team.
Annual run-rate of recurring revenues at period end were ahead 4% at £2.98m.
The company reported net cash of £5m as at 31 December, making for an increase of £0.6m over the prior year.
Arcontech's board said at this stage, it was expecting profit before tax for the year ending 30 June to be in line with market expectations.
"The board is pleased with Arcontech's progress in the first half of the year," said chairman Geoff Wicks.
"While the effects of the Covid-19 pandemic have continued to overshadow the market we have grown revenue with the addition of an important new customer and a significant upgrade to an existing tier one customer."
Wicks said that at the same time, the company maintained good profit levels after investing in future growth.
"We believe we are in a good position to accelerate growth once market conditions improve."
At 1300 GMT, shares in Arcontech were down 12.53% at 164p.