Business Control Solutions Group plc has released its preliminary results for the 12 months ending 31 December 2006.
Highlights included a turnover of 8 million, down marginally from FY2005’s 8.2 million because of a transition to an annuity-based revenue model; a trading loss of 500,000 resulting from accelerated investment; a reduction of overall retained loss to 700,000 (FY2005 was 1.9 million); and an increase in software sales by 21 percent to 1.9 million.
“The company has made significant progress in 2006 in further consolidating its market position whilst simultaneously and successfully completing a 3 million fundraising to finance the future growth of the company,” said Nigel Walder, CEO of Business Control Solutions. “2007 will continue to be a period of investment, with the emphasis being placed on sales and marketing in the second half of the year.”
Robert Sanders, a consultant with Arbuthnot, said the results were in line with his forecasts, though he pointed out some points of interest.
“Net cash of 3.7 million at yearend was ahead of our 3.2 million forecast,” he said. “The key financial event of 2006 was the 3 million fundraising in October allowing management to accelerate investment in both software and consultancy.”
Commenting on future progress, Sanders said: “2007 will still be a transitional year following the adoption of the higher-quality annual license per user software model. … Meanwhile, there is scope for significant and positive news to support the share price in the coming months.”
For more information about Business Control Solutions, read “Network Managers Get Rational on Costs” from the October edition of Global Custodian magazine.