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

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

PR Newswire

London, December 10

11^thDecember 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 GBP630,000.

  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.

  Outlook

  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,

  Chairman.

Netalogue Technologies PLC

Consolidated profit and loss account

for the period ended 30 September 2018

	Six months ended 30 Sept 2018	Six months ended 30 Sept 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 amortisation	180	(22)
Depreciation	(3)	(3)
Amortisation of intangible assets	(35)	(35)
Operating profit / (loss) on ordinary activities before taxation	142	(60)
Tax on profit / (loss) on ordinary activities	-	11
Profit / (loss) for the period	142	(49)