Invu squeezes into profitability

Battling document management software provider Invu broke through the barrier and made it back into net profitability in H1 2012, coming in £0.04m in the black vs £0.22m in the red for the same period last year (see Invu battles on). But the good news only permeated so far because revenues dropped off 2.7%, settling at £1.28m vs £1.32m for the six months to July 31 2012.

Although the company has been focusing on cash generation, the return to profit has as much to do with non-trading factors, including a capital reorganisation programme that reduced the interest burden. The core business is still struggling with new sales declining and only partially offset by additional sales to existing customers. Fortunately, those existing customers appear to be loyal - the renewal rate moved up to 92% compared to 89% last year. Invu is also benefitting from its ongoing reseller agreement with IRIS. Management can catch their breath but only for the briefest of moments - they are warning that H2 will be tough due to a weak UK economy, which will make it hard for them to close new business.