Recruitment software and services provider Bond International Software has been hit by a lack of new software licence deals in the UK and the high margin nature of these sales means that profit has fallen in the first half of 2012.
Shares in Bond fell 7.5p to 53p, valuing the software company at £19.4m.
Interim revenues slipped from £18.4m to £17.4m, while first half profit fell from £533,000 to £177,000. Net debt was £1.98m at the end of June 2012.
Nearly all new deals in the first half were SaaS contracts rather than one-off software licence sales so the benefits of the deals take longer to show through. The positive side of this is that recurring revenues are increasing. The one region that is growing revenues is Asia Pacific, helped by a major order from Japan. An initial contract has been won in Peru.
HR and payroll software revenues fell 5% as older products get closer to the end of their life. Outsourcing grew revenues by 10% to £5m.
The outcome for 2012 is likely to be similar to last year when Bond made a pre-exceptional profit of £786,000, or £2.38m excluding amortisation of acquired intangibles.
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