Mondas shares surge on profit forecast

Mondas shares surge on profit forecast

Shares in UK banking and securities software vendor Mondas have soared after the company reported full year revenue of £4.5m and said it was on track to report its first ever profit when it releases its results in July.

Mondas stock was up 15.60% to 18.50 pence in early evening trading after the company reported its "best ever sales performance" in a trading update.

The vendor expects to post a pre-tax profit for the year ending 30 April 2005 in the region of £50,000, compared with a loss of £807,000 in 2004 and a loss of £533,000 in the first half of 2005.

Mondas - which has reported a loss every year since it was floated on the AIM in 1996 - says the turnaround was achieved through cost cuts, strong revenue growth at its banking and securities division and improved margins at its resource business unit. The vendor's balance sheet also strengthened significantly, with end of year balances at approximately £1m.

The company expects to release its full year results in July.

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