Alterian Reports Lower Revenue, Huge Impairment Charge

UK-based analytics and social media monitoring specialist Alterian has reported a 6% drop in revenue to £17.2m for the six months ended 30 September 2011, while registering an operating loss of £18.6m resulting from its current business review.

Alterian, which was founded in 1997, recently announced a plan to reduce its cost base by £10.6m following a slump from a pre-tax profit of £6.6m to losses of £4.4m earlier in the year.

Under the direction of new Chairman Phil Cartmell and CEO Heath Davies (pictured) an accelerated review of the business has been taking place, which has resulted in the consolidation of its six main sales and marketing centres and closure of five 'non-core' offices, the reduction of headcount by 275 staff, and a business re-structure around three products - campaign management and analytics; social media and insight; and web content management - across two territories, Asia Pacific and Central Europe.

The operating loss of £18.6m (compared with £0.6m profit in 2010) includes £1.7m relating to these restructuring costs, £12.7m of goodwill impairment, and £0.6m of impairment of investments. Without these items, the operating loss would have been £0.9m, compared with £2.9m profit for the same period in 2010.

Davies comments: 'As our 100-day transformation programme nears completion, we are now in good shape to focus on generating cash and growing profits and providing the platform for future organic growth. We are now gaining real momentum. With some £23.3m of forward visibility, 800 active customers, a global footprint and market leading IP, the Board is increasingly confident about the group's prospects.'

The firm is currently considering an acquisition approach from translation software firm SDL, which is offering £68.7m, equivalent to 110p per Alterian share.

Web site: www.alterian.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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