Portrait Software reported flat 2007-08 profits.
Revenues dipped from £14.4m to £14.1m in the year to March 2008 but this masks an improvement in the second half. The fall was mainly down to the fact that the £1m Impendium deal was not repeated. Software licence revenues increased from £3.4m to £3.9m.
R&D spending was held steady at £3.6m but overall operating costs were lower. Stripping out exceptionals and amortisation, Portrait generated barely changed profits of £630,000. There was only a small tax charge because the company has £60m of tax losses. Cash generation helped Portrait achieve a net cash figure of £900,000.
The acquisition of Norway-based Million Handshakes came too late in the year to have a meaningful effect on the figures. It added nearly 100 customers to the group, taking the total to more than 300.
Portrait’s software helps businesses interact with their customers and understand their needs. It covers marketing analysis and reporting, campaign management, lead management and interaction management. These markets are growing rapidly.
Analysts expect this year’s profits to be at least £1m.
Azini Capital Partners owns 19.8% of Portrait Software, as well as 26.9% of Focus Solutions. Kingston-upon-Thames-based Azini knows the sector well and should be able to help Portrait expand through acquisition.
The shares fell 1.75p to 12.25p, valuing Portrait at £14m.
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