30 October 2017 – trading update
The software and IT services group has issued a trading update for the year to 30 September 2017. This has revealed that revenues for the year are likely to be slightly lower than expected at £21.5m (2016: £21.3m) although operating profits for the year before exceptional charges are likely to be around £3.9m (2016: £3.7m). Recurring revenues increased to over £11m and represent over 50% of sales, whilst group margins remained strong at 82% The group’s order book remains strong at £5.8m and net cash at the end of the period was over £6m, ahead of expectations. This is a re-assuring statement and we maintain our recommendation of BUY ahead of results due on 28 November 2017.