NetServices has sold its consumer broadband business enabling it to concentrate on its core converged network services business.
The consumer business was sold in May so it was included for most of the financial year to August 2007. Its loss was partly offset by a profit on its sale. NetServices reported a reduction in loss from £3m to £607,000 on turnover reduced from £16.2m to £12.6m. Continuing operations cut their operating loss from £2.23m to £428,000 on turnover rising from £6.73m to £7.44m.
Overheads have been slashed from £360,000 a month to £240,000 a month. Net cash was £1.3m at the end of August although this is flattered by a £400,000 advanced payment to the company.
NetServices has won a three year contract worth £1.5m with an accountant. There is plenty of potential work in the pipeline but it is difficult to assess how successful the company will be in winning the work. The business should continue to improve its performance but the rate of improvement depends on how much work it wins.
NetServices floated on 8 March 2006, raising £5m at 71p a share. It is currently valued at £2.5m, at 8.5p a share.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.