News blog
Redknee Solutions Inc
- BY: Andrew Hore |
- POSTED: 28/05/2008 |
Redknee Solutions Inc is benefiting from mobile telecoms growth in the Far East and Africa.
Canada-based Redknee provides software and services to mobile telecoms companies. Its software helps the companies with billing, charging, personalisation and data services. It is an international business with the fastest growth in Asia and Africa.
Revenues increased from C$20.7m to C$24.1m in the six months to March 2008, while the loss was reduced from C$2.74m to C$863,000. Most of the reduction in the loss was due to a large foreign currency exchange gain. R&D spending is 27% of revenues.
Redknee says that full year revenues should be in the range of C$45m-C$48m. Redknee is more than half way there already and second half turnover is normally higher so this looks a reasonably conservative target. The order book is worth C$28.4m. They were 29% of the total in the first half.
The majority of revenues are from software sales but recurring revenues are being built up.
There is C$16m of cash in the balance sheet which will help finance any further cash outflows and provide scope for acquisitions. Management says that it wants to add depth to its product range. Its first ever acquisition was Argent networks, a revenue assurance, interconnect and content settlement software provider, which was bought in February for C$1.13m, including costs. This added C$200,000 a month to recurring revenues.
Redknee joined Aim on 23 February 2007, when it raised £17.5m at 105p a share. The shares edged up 1p to 38.5p following the results.
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