Strategic Thought’s full year figures were better than expected.
The enterprise risk management software provider still reported an increased loss of £2.03m in the year to March 2008, against £1.41m the year before. However, stripping out the exceptionals the loss fell from £627,000 to £298,000. There is net cash of £4.54m.
Martin Metcalf was appointed chief executive in June 2007 and he has rationalised the business. Strategic Thought is stopping selling low margin third party products and withdrawing from providing other services. The non-core activities made up nearly £6m of last year’s turnover of £13m. There will continue to be some revenues from these activities in the current year but they will end in the second half.
House broker KBC Peel Hunt forecasts breakeven for this year. Growth in the core business will be offset by higher staff costs as more experienced management is being appointed.
The shares rose 12.5p to 97.5p, valuing Strategic Thought at £25.7m.
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