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DJ Netalogue Technologies Plc Unaudited results six months ended 30 September 2018

11th December 2018 
Dear Shareholder, 
I am pleased to report increased revenue in the six month period to 30 
September 2018 compared to the prior year period resulting in an increase in 
EBITDA and a strengthened cash position. 
Key Highlights: 
  * Revenue of GBP647,000 
  * EBITDA increased by GBP202,000 to GBP180,000 
  * Net Assets of GBP717,00 with an increased cash position of GBP648,000, no 
    debt, no borrowings. 
    Results Commentary 
    We have had a good start to FY19 with a strong H1 performance and a good 
    pipeline that gives us confidence for a positive end-of-year outcome. 
    Sales have increased by GBP168,000 to GBP647,000 compared to the prior 
    period principally attributed to an increase in license sales  and 
    recurring revenue streams.   Sales have been made to both new customers and 
    existing users demonstrating the attraction of the Netalogue E-commerce 
    platform to the marketplace in general and the advocacy we enjoy from 
    existing customers. As a result gross profit has increased by GBP163,000 to 
    We have also continued to be prudent in operating the business with strong 
    cost control resulting in a decreased year-on-year cost base.  This results 
    in an improved EBITDA position with a profit of GBP180,000 and Net profit 
    before tax for the period amounting to GBP142,000. 
    The Net asset position has increased to GBP717,000 compared to GBP652,000 
    in the prior period. Cash reserves remain positive and have strengthened 
    compared to prior year end. 
    We are encouraged by our sales pipeline for the rest of FY19 and the 
    outlook into FY20 and regard this as a testament to the strategies we set 
    in place early in FY18. Our pipeline is strong for both direct and 
    in-direct sales and we are very pleased with our partnership relationships 
    in our re-seller base. 
    Clearly the impact of BREXIT remains an issue for us to consider.  Thus far 
    we have seen no noticeable impact on the conversations we are having with 
    prospects and customers although it remains a truism to say that there is 
    nothing worse for business than uncertainty in market conditions. 
    Despite considered cost control we continue to invest heavily in R&D to 
    deliver even higher levels of customer satisfaction we are well positioned 
    for the larger and more complex deals where the Netalogue B2B platform 
    dominates over other solutions. 
    With the increasing demand for cloud/SAAS based solution delivery at the 
    lower end of the B2B market we are responding to this with suitable 
    subscription based pricing options. Whilst this will lower the initial 
    short-term revenue, it assists our strategy of making our underlying 
    revenue more linear (and predicable). 
    We remain confident in the Netalogue B2B Ecommerce platform, our strategies 
    and their ability to deliver customer satisfaction and long-term growth. 
    Nick Barley, 
Netalogue Technologies PLC 
Consolidated profit and loss account 
for the period ended 30 September 2018 
                                                     Six months    Six months 
                                                  ended 30 Sept ended 30 Sept 
                                                           2018          2017 
                                                         GBP000        GBP000 
Turnover                                                    647           479 
Cost of sales                                              (17)          (12) 
Gross profit                                                630           467 
Net operating expenses                                    (488)         (527) 
Operating profit / (loss) before depreciation and           180          (22) 
Depreciation                                                (3)           (3) 
Amortisation of intangible assets                          (35)          (35) 
Operating profit / (loss) on ordinary activities            142          (60) 
before taxation 
Tax on profit / (loss) on ordinary activities                 -            11 
Profit / (loss) for the period                              142          (49) 

(END) Dow Jones Newswires

December 11, 2018 02:00 ET (07:00 GMT)