UK banking and securities software vendor Mondas has scraped its first ever full year pre-tax profit of £79,000, driven by second half growth at its banking and securities unit and increased sales to new and existing clients.
Mondas said in May that it was on course to post its first ever profit since it was floated on the AIM in 1996, after reporting a 15.5% growth revenue to £4.5m for the year ending April 30th 2005.
Although Mondas posted first half losses of £540,000, cost cuts and strong growth in the second half bolstered full year profits. The firm posted a second half profit of £619,000 driven by a 45% growth in revenue from its banking and securities unit and a 96% increase in licensed revenues following sales to new and existing clients.
Operating costs before amortisation of goodwill and restructuring charge were reduced by six per cent to £4.3m (2004: £4.6m). The vendor's balance sheet also strengthened significantly, with end of year balances at £1m.
But the business still recorded an operating loss of £1.1m after goodwill amortisation, restructuring and depreciation, compared to £1.5m last year. Losses before tax reduced to £1.4m, compared to £1.8m last year.
Furthermore, revenues at the vendor's resource business unit (RBU), which is focussed on the education market, were down nine per cent due to lower services revenues, as contract deliveries were weighted towards the second half of the year.
Looking ahead, Jarlath McGee, Mondas chief executive, says: "We have a strategy that should ensure that we capitalise on developments in the marketplace in both of the sectors in which we operate. Following our recent success in banking and securities, we feel confident of further progress in the current year."