E-procurement software and services player @UKplc has reversed last year's good run of form (see here), with first half revenue falling 13% to £1.1m, and pre-tax losses widening to £363k vs. £222k last time. Investors responded by wiping 13% off @UK’s shares.
This is a concerning change in fortunes for @UK, which had delivered a strong set of numbers last year - first half revenue went up 25%, and the second half was up 6%. @UK delivered full year revenue growth of 15%.
@UK should be doing much better than this. But it is in a tough and highly competitive e-procurement market space. To turn things around, management is pinning its hopes on two international opportunities one in Asia Pacific and the other with a US state. Increasing the UK sales from 1 to 6 people during the half has helped it to grow the number of proposals it is now working on to 180 worth £3.5m. This is up from 67 worth £1m at the end of March. All efforts will be needed to convert these opportunities in the second half. But it is now going to be a tough ask to hit FY expectations.