News Column

DRS Data & Research Warns Of Likely "Significant Loss" For Full Year

August 28, 2014

Hana Stewart-Smith

LONDON (Alliance News) - DRS Data & Research Services PLC Thursday reiterated that its revenue and operating profit are likely to be below expectations for the full year, and warned that a "significant loss is probable" for the full year, as it posted a widened pretax loss in the half year to end-June.

The company posted a pretax loss of GBP2.8 million, widened from GBP638,000 a year before, as revenue declined to GBP5.4 million from GBP6.6 million.

The company said its first half had been hit by structural change to academic qualifications in the UK, which led to fewer examinations being sat in January and March.

Due to the downturn in the general level of activity, DRS undertook an impairment review of the value of its business assets. This led to the value of its Linford Wood property being reduced to GBP1.6 million, leading to an impairment charge of GBP813,000.

DRS has not recommended the payment of an interim dividend.

Conditions in overseas eduction markets for the company's traditional scanner and print sales proved to be "more challenging than anticipated", DRS said, largely due to increasing competition and reduced margins in its traditional markets.

DRS said that, overall, the full year performance of its education business is expected to decline. It completed a contract for the Myanmar census in the first half, but noted that non-education revenue will be lower for the full year as there are "no new large scale census or election opportunities in the current year".

Shares in DRS were trading down 8.5% at 15.10 pence Thursday morning. The shares hit a new 52-week low of 14.00p in early trade.

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Source: Alliance News

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