AIM-listed MSP Adept4 has posted a set of disappointing financial results for the first half, and says it will continue to restructure the business to return to growth.
Unaudited interim results for the six months ended 31 March 2019, show sales fell to £4.2m from £5.4m in the same period last year, and that trading group EBITDA was just £15,000, compared to the £500,000 seen for H1 2018.
Losses for the period climbed to £1.1m, up from the £800,000 last time. Net debt as of 31 March 2019 was £3.4m.
The company however says there was a 'significant reduction in costs' at end of period following the 'decision to focus more on the existing customer base' with 'less emphasis on new business generation'.
Simon Duckworth, Non-Executive Chairman of Adept4, said: “Having returned the business to modest levels of monthly profitability with a reduced cash burn, the board has more recently been able to focus on taking positive steps to return the business to growth.
“Good progress has been made in this regard and we look forward to updating shareholders on our future plans in due course.”
In February 2019, the company published its financial results for the year ended 30 September 2018.
Within those results it noted that FY18 had been 'extremely challenging', with the investment made in a new sales team 'not yet delivering the results' it had hoped for.
A cost reduction programme was completed at the end of March 2019 and has reduced overheads by around £75,000 per month.
According to Duckworth though, the recent performance of the business has been impacted by the cancellation of a contract by a major customer, as announced on 8 April 2019.
Duckworth said: “We dispute that the contract termination is valid and we are currently seeking legal redress from the customer.”