IT services and consultancy group Microgen PLC (LSE: MCGN) has released the results for the first half of 2009 ended June 30 ahead of schedule.
Group revenues fell to £16.5 in the first half of 2009 compared to £16.9 million for the first half of 2008. However, adjusted basic earnings per share excluding exceptional items improved to 2.8p from 2.4p. This enabled the company to increase the interim dividend to 0.8p per share from last year’s 0.7p - a 14 percent increase.
The company highlighted the high demand for two of its products, Microgen Aptitude and Microgen Accounting Hub. The former performed better than last year in terms of its revenue’s share in the group’s overall turnover, which went up to 29 percent from 22 percent in the first half of 2008.
The success of Microgen Aptitute was the main reason behind the group’s decision to raise the interim dividend.
While Microgen Aptitude and Microgen Accounting Hub performed strongly, the market conditions haven’t been as favourable to the group’s other divisions.
“This performance is even more satisfying having been delivered in a very difficult economic environment. These same market conditions, however, have affected the Group's other businesses, although both the Financial Systems Division and the Billing Services Division remain profitable, high margin businesses with strong cash flow,” said Chairman Martyn Ratcliffe.
Net cash at the end of Q1 was £12.8 million, down slightly from the £13.8 million.
The group said earlier in the year that Q1 results were meeting the projections amid a challenging market environment and that the outlook for the year was “cautiously positive.”
Shares in Microgen were little moved despite the increase of the interim dividend.
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