News blog

Active Risk Group

• BY: Andrew Hore |
• POSTED: 03/04/2013 |

House broker finnCap has more than halved its forecast 2012-13 loss for Active Risk Group following a much stronger second half.

Risk management software provider Active Risk says that it expects to lose between £300,000 and £400,000 before interest and tax in the year to March 2013. Revenues were 12% higher at £8.1m with licence sales higher than expected. This reflects a second half profit which partly offset the first half loss. Four weeks ago finnCap downgraded its forecast from a profit to a £800,000 loss.

Fixed costs have been reduced with some of the benefits coming through in the second half of 2012-13. These fixed costs will be £2m lower in the current year. Cash was £2.7m at the end of March 2013.

At 17p a share, up 4p, Active Risk is valued at £5.67m. The company could return to profit in the year that has just started.  The shares are trading on less than 16 times prospective 2012-13.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMarch2013_42.pdf