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Prologic

  • BY: Andrew Hore |
  • POSTED: 07/11/2008 |

Retail software systems provider Prologic says some business has been delayed and interim revenues will fall by 5%. 

That means that Prologic will break even at the operating level in the six months to September 2008, against £405,000 profit after exceptional charges of £205,000 in the first half of last year. Prologic has more than £2m in cash.

The shares slumped 15p to 37.5p each, which values Prologic at £3.75m – most of which is covered by cash. The shares are illiquid and prone to sharp movements.

Prologic says that its customers, which are retail chains, have been hit by poor sales and they are less confident of investing in new software and systems. The internet software side of the business is still in demand.

This has prompted the company to hasten its move to a Software as a Service model. More than half of the current revenues are contracted and recurring and this proportion will increase.

However, full year profit will be substantially lower than the £1.75m expected. Around 10% of employees have been made redundant.

Colin Wells is taking over from Derek Lewis as chairman, while Mark Quartermaine replaces Gareth Chick as a non-executive directors. They have experience in the Software as a Service and retail markets.

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