With a 3.6% increase in revenue for the year to September 30 2012, EDP is on the right side of the growth chart and has moved up from the flat yoy revenue situation of the previous year (see here). The move into hosting, particularly for its sales intelligence product, is helping this long established company to endure.
EDP’s prime business is the provision of software and services to the UK wholesale distribution industry, which remains a tough area to operate in so the tick up to £5.8m in revenue was creditable. High levels of recurring revenue play an important part in business stability but contracted recurring revenue fell from 79% to 76% so this is an area to monitor. Hosted revenue was up to 43% from 34% this time last year though, so this is emerging as a new line of stable business. Write-downs on the value of property to be sold pushed EDP into the red to the tune of £83,000 vs PBT of £896,000 in the previous year (including a boost from property sale). Excluding property gains, PBT was £776,000 vs £561,000 last year. The company remains debt free and has £5.65m in cash. More property sales are set for the current FY. EDP is nestled into a niche and this has kept it going so far but it is uncomfortably closer to stasis than growth.