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Geong International Ltd

  • BY: Andrew Hore |
  • POSTED: 02/12/2009 |

Enterprise content management software provider Geong International Ltd reported a sharp rise in profits in the six months to September 2009.

Revenues increased 26% to 6.5m, while profits improved from 388,000 to 1.08m. The current order book is 14m which provides some reassurance that Geong can continue to grow.

There was net cash of 2.38m at the end of September 2009 and Geong has subsequently raised 2.2m in a placing at 38p a share. The cash will help to finance higher working capital. Trade receivables are high partly because Geong undertakes work that is not invoiced until the job is completed. That is why accruals are a significant figure. Cash flow tends to be better in the second half.

Geong is moving into new sectors, such as energy, and hopes that banking and telecoms will provide further growth. A move to a Software-as-a-Service model will increase recurring revenues.

At 43.5p a share, up 2p on the day, Geong is valued at 15.7m.

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