News Column

Software Radio Technology Swings To Loss Due To Contract Delays

June 17, 2014

Steve McGrath

LONDON (Alliance News) - Software Radio Technology PLC Tuesday said it swung to a pretax loss in its last financial year, as revenue fell by more than a third due to delays to two significant contracts that forced it to carry more stock than hoped and to draw down bank facilities.

The company, which makes ship location technology, reported a pretax loss of GBP1.5 million in the year to end-March, compared with the GBP1.2 million pretax profit it posted a year earlier, as revenue slid to GBP6.1 million, from GBP10.0 million.

It had warned back in January that two significant projects had been delayed. It said the projects have now reached implementation phase.

It was more positive about its outlook, saying that it has increased its customer base around the world, and is expecting the market for its ship location technology to continue growing. Its recent acquisitions have also opened up new streams of recurring revenues through the licensing of services and data sales, it added.

"The delays to expected project and mandated orders this year resulted in us carrying larger than expected quantities of stock for longer than expected. As the delayed and other new projects convert into orders we expect our stock position to normalise," it said in a statement.

The delays meant it had to draw down on its GBP1 million bank facility, while its stocks rising to GBP4.2 million at cost. It ended the year with a cash position of GBP1.3 million.

Its shares were down 9.1% at 20.45 pence Tuesday morning, one of the biggest declines on AIM.

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Source: Alliance News

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