UK-based banking technology vendor Financial Objects is reporting a marginal return to profitability in the first half, despite a reduction in revenues against the same period last year.
The vendor has posted an operating profit of £26,000 (H1 2003 loss: £0.75m) and profit before tax of £125,000 (H1 2003 loss: £1.17m).
Revenues reduced to £4.6m (H1 2003: £5.7m) reflecting continuing difficult market conditions.
Commenting, Roger Foster chairman, Financial Objects says: "In the context of the ongoing difficult trading conditions, the decision to create a leaner organisation focused on sales partnerships and cost control has resulted in the return to profitability."
He says the establishment of a new development centre in Bangalore has made a significant contribution and that the firm will add to the 40-strong staff contingent in India over the coming year.
Foster also talked up the firm's new partnership deal with Siemens, saying: "We are already working with them on new business opportunities, which, if successful, would make a major contribution to the group's future performance."
In sales, Foster reports a profitable period for Ibis, with "encouraging signs of activity" among the established user base, and additional orders for the component-based ActiveBank product. ActiveBank revenues, however, declined from £2.6 million in the first half of 2003 to £1.6 million in the first half of 2004.
The order book at £7 million - represents 67% of prior year's revenue.
By mid-day, trading in the group's shares was up 3.6% to 43 pence.