News Column

Ultima Networks Swings To Loss On Weak Demand For Electric Bikes

May 23, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Ultima Networks PLC Friday said it swung to a loss in 2013 due to falling sales and exceptional restructuring costs and legal expenses from a litigation.

In 2013, the group recorded a pretax loss of GBP184,00, compared with a GBP71,000 profit in 2012, after it booked GBP131,000 in restructuring costs and made a provision for potential legal expenses to defend a claim brought against its IT services division

Revenues in the period alos were lower, down to GBP2.3 million from GBP2.7 million a year earlier.

The group said its green-technology division - comprising electric bicycles, energy-saving lamps and educational electronic kits - suffered significantly wider losses due to a drop in sales during the year. It said the division suffered from a lack of sales of its premium range of electric bicycles into continental Europe, with consumer demand for luxury products in the UK remaining weak.

Ultima said its IT services division made a bigger operating profit, but reported a 5% fall in sales. The division provides computer application software and related services to small- and medium-size legal practices in England and Wales.

"The outlook for the division is for continued improvement in overall performance and profitability based on the quality of the software solutions being offered to a niche market sector and the loyalty arising from attention to client needs," the company said.

Ultima Networks shares were untraded Friday morning at 0.400 pence.

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Source: Alliance News

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