AFA Systems narrows losses

AFA Systems narrows losses

AFA Systems, the AIM-listed provider of software for the banking and asset management industries, has announced a rise in turnover and narrowing of losses for the year ending December 2003.

A combination of improved second half trading conditions, cost reductions and a £0.3 million contribution from new acquisition Sams, helped reduce operating and pre-tax losses year-on-year, from £10.7 million to £3.1 million, and from £10.6 million to £3 million respectively.

Group revenues for the year as a whole were £6.5 million, marked by stable to slightly rising revenues from existing customers, but sluggish new customer sales. Thus total revenues from existing customers rose five per cent, with recurring revenues increasing by around eight per cent. However, new customer revenues were down six per cent on last year, representing around 17% of total revenues (excluding Sams).

Mike Hart, chairman and chief executive, says the firm continues to see an increase in enquiry levels and pipelines, but cautions: "The pace of recovery and its conversion into large orders is still slow. The expected increase in order flow is therefore more likely to benefit revenues incrementally in the second half of the current year."

The stock was down 5.4% in mid-afternoon trading at 26 pence.

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