News blog
Corero
- BY: Andrew Hore |
- POSTED: 23/11/2007 |
Financial and educational administration software supplier Corero continues to disappoint.
Corero’s name may have changed but it has the same problems as when it was called Mondas. Last year it said that contracts were delayed. The same has happened in 2007.
Despite announcing new customers for its software aimed at brokers and investment banks Corero will have a poor second half. To be fair, though, its business systems division, which supplies software to colleges and universities, is set to have its best year ever.
Corero will make a loss in 2007, compared to a profit of £408,000, after adjustments for amortisation and exceptional charges. At the beginning of the year analysts had been expecting Corero to make profits of £1.2m in 2007. This was slashed to £500,000 but that has still proved too optimistic.
Earlier this year the management made a lot of effort to persuade people that the business had turned the corner. So it is no surprise that the shares are less than one-third of their high for 2007 – even after a 0.375p rise to 6.25p.
Management wants to grow the business because it is small for a quoted company – particularly following the share price slump. Given the performance of the company and its management that is likely to prove difficult.
Costs have been cut while contracted and recurring revenues cover three-fifths of overheads.
“Measures have been implemented to reduce costs significantly, in order to achieve profitability in 2008 and at the same time to maintain and enhance customer service and our ability to win business”, according to the company. We will see in a year’s time whether the hoped-for profitability has materialised.
Roy Mitchell, a 4.4% shareholder, is joining the board as a non-executive director. He will also be a member of the remuneration committee. It will be in his interests to try and improve the performance of the business and its management.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|