Formjet was hit by write-offs relating to a failed acquisition in 2008 but the current year has started well.
The software supplier’s revenues were slightly lower in 2008 at £3.59m. The reported loss increased from £70,000 to £845,000. Even if the exceptional charges of £520,000 relating to stock write-downs and costs of the acquisition that did not pass due diligence are excluded, the loss still trebled. The fourth quarter was poor with year-on-year revenues nearly one-quarter lower.
Net debt was £57,000 at the end of 2008 and management believes that it has enough cash in the bank. Annual costs have been cut by £500,000.
Revenues in the first four months of 2009 are 23% higher than the same time last year helped by the launch of the latest ASI Ability Office software. Excluding one-off transactions, the growth is 17%.
Management is aware that the company needs to be bigger to justify the Aim quotation but it is cautious about making acquisitions.
Shares in Formjet recovered 0.13p to 0.4p each, which values the company at £1m.
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