Portrait swings to H1 profit

Portrait swings to H1 profit

Aim-listed CRM vendor Portrait Software swung to a first half profit, boosted by a doubling of license sales and strong progress in the US market.

Revenue for the six months was £7.5 million, up nine per cent from £6.9 million in 2008 with license sales more than doubling to £2.4 million.

This contributed to an operating profit of £400,000, compared to a loss of £1.3 million in the same period the previous year. Adjusted Ebitda was £700,000, compared to a loss of £900,000 in 2008. Fully diluted earnings per share were 0.29p versus a loss of 1.20p in 2008.

The company says revenue in the Americas region increased 19% to £2.5 million on the back of increased sales of its Uplift analytics application.

European sales were also up, jumping 16% to £4.7 million, thanks in part to a contract win "at a major UK supermarket bank" for reseller partner firm Fiserv. Last week Fiserv reported a core banking contract with Tesco.

Results from Asia Pacific were less encouraging, with revenues down from £800,000 in H1 2008 to £400,000.

As well as improved revenues, the firm says cost efficiency measures taken last year have helped improve gross margin to 74% from 61%.

Luke McKeever, CEO, Portrait, says: "We are delighted that the first half was significantly ahead of our internal plan, continuing the successful momentum of the six months which preceded it. Our sales pipeline for the second half is strong across the full range of our applications, giving us confidence that the full year will show profitable growth."

Shares in Portrait were up 5.9%, or one pence, to 17.75 pence in mid-morning trading.

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