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Prologic, the tiny AIM-listed provider of software to the fashion and lifestyle industries, has announced results in the red for the first half of FY12. It’s also heading into a “strategic review”.
The company made an EBIT loss in the six months to end September of £510k, on revenue that was down 11% at £4.4m. That compared to an EBIT profit of £84k in the same period of 2010. If you exclude restructuring costs, Prologic made a small operating profit of £12k in the first half.
It’s not hard to see why Prologic have asked Cobalt Corporate Finance to undertake the strategic review. The retail market remains tough for many, so for a small software firm targeting early stage fashion houses, it’s not easy going at all (see also our comment on Prologic’s full year results in Prologic makes “unfashionable” loss). And while it’s not yet time to bid farewell to this highly-focused Little British Battler, it must be likely that Prologic, with Cobalt’s help, will find its “additional resources to further strengthen the Company's prospects” outside of AIM and potentially through a sale of the company.
