London trading technology vendor Patsystems has narrowed pre-tax losses to £0.8m for the year ending 31 December 2005, compared to a loss of £2.9m a year ago, by cutting costs and increasing revenues, but the firm failed to deliver the profits it promised last year.
The AIM-listed firm says turnover for the year increased to £15.2m from £11.8m in 2004, and the group's normalised profit for the year was £523k, compared to a loss of £461k in 2004.
Stewart Millman, chairman, Patsystems, says although the turnaround achieved in 2005 was "substantial", the breakthrough into normalised profit "was not achieved to the full extent anticipated".
The vendor, which predicted it would break even in August last year, says lower than expected user revenues in the UK, delays in product upgrades and extended client timescales were the main factors that led to the 2005 result not being as originally anticipated.
Millman says it is difficult to claw back lost turnover, but revenue from new product offerings and potential new projects should contribute to the results for the coming year.
"I am confident that in 2005 a strong foundation has been laid for profitable business growth in 2006. Perhaps the most important aspect of 2005 is that Patsystems has emerged as a 'normal' company intending and expecting to trade at a reasonable level of profit," he says.
Patsystems' new CEO David Webber - who is replacing Kevin Ashby - says trading subsequent to the year-end has progressed in line with expectations.
Shares in the firm rose 5.60% to 14.00 pence in morning trading.