News blog
Atlantic Global
- BY: Andrew Hore |
- POSTED: 23/09/2009 |
Resource management software provider Atlantic Global reported sharply lower revenues in the six months to June 2009 but it expects an improvement in the second half.
A tough trading environment exacerbated the short-term effect of moving from a concentration on the licence fee model to a Software-as-a-Service model. This means that there is less revenue up front but it is replaced by longer-term recurring revenues.
Revenues slumped from £1.12m to £647,000 in the six months to June 2009. A profit of £201,000 in the first half of 2008 was turned into an interim loss of £148,000.
The lower level of business reduced working capital requirements and this led to a slight improvement in the cash figure to £2.27m at the end of June 2009. This cash pile helps Atlantic win new business by making its customers feel more secure ordering from the company.
Atlantic plans to add two new products to its software range in the second half. Client billing and financial & resource forecasting modules will be launched in November. They should help to boost sales in 2010.
Daniel Stewart forecasts a fall in full year profits from £401,000 to £328,000 in 2009. That would mean that the second half profit would have to be higher than for the whole of 2008. The third quarter was tough but management says that it is near to securing contracts that will help Atlantic do much better in the rest of the year.
At 21.5p a share, Atlantic is valued at £4.87m. The final dividend is expected to increase from 0.6p to 0.9p a share.
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