Alterian Results Confirm Forecasts
Following two warnings last month Alterian, the analytical software company, has published figures today for the full year to the end of March. The numbers confirm a swing into the red with revenue declining slightly despite rising costs.
The company slumped from pre-tax profits of £6.6 million to losses of £4.4 million in the year to March. Revenue of £37m was down from £38m the year before, as a 10.9% increase in the USA was offset by a 16.6% fall in the UK. Loss per share was 7.1p, versus earnings per share of 12.5p previously.
Adjusted operating profit, whilst 'in line', dropped from £7.7m to just £0.1m. Operating expenses jumped by 22% from £30.3m to £36.9m, due to new product costs, higher sales and distribution costs, and the introduction of managed service activities in the USA.
The firm said revenue growth was hampered by the delayed roll-out of its latest suite of products for campaign management and analytics, Alterian Alchemy, and also due to the loss of some major business.
As reported here and here the company was also dealing with leadership issues with Chief Executive and co-founder David Eldridge stepping down with no successor in place. As a result of this veteran director Keith Hamill put off his retirement as Chairman.
Hamill said the board was still conducting a review of the business and would make a further statement in June when this was completed. He said last year's losses came after £3.3 million of exceptional costs, including a £1.7 million bad debt. He added: ‘I continue to believe that the company has good and competitive products addressing growing markets, and some very able people. If well managed, it will get back on track.’
Alterian expects to report £41m in revenue in the current year, but has said that the figure is ‘subject to uncertainty and will be affected by general market conditions.’
Web site: www.alterian.com .