From a low this time last year, DRS Data and Research’s roller coaster-style financial results are currently at a peak, boosted by international election and census work, but although this work has reduced the level of losses the company remains in the red.
H1 revenue (to June 30 2012) was up 41% yoy to £9m, with the loss reducing from £157,000 to £113,000. Education contributes the largest portion of revenue to the overall business (£5.1m in H1) but revenue from this sector dropped 10% yoy. With much of its revenue coming from the UK, it is susceptible to local conditions.
In contrast to this time last year (see Elections are not a win for DRS,) the revenue increase was down to its election and census business, particularly work carried out in Zimbabwe, Tanzania and Canada. DRS also delivered on its London Mayor and Assembly elections contracts but higher than expected software development and testing costs meant that profits were minimal - the platform can be reused. Revenue from the election and census business lines increased by a stunning 438%, reaching £3.9m. The challenge is reducing the variance in the revenue levels in these areas, which are subject to big peaks and troughs. The international successes are a positive sign but DRS also needs to pick up business from non-government areas, such as trade union elections.