BCS moves into profit; market conditions described as "challenging"

Financial Highlights:
*Group turnover down 2%:
- Consulting revenues up 8%
- Software revenues down 39%
*Recurring revenues up to 65% of Software revenue (2007: 23%) *Profit before tax £29,000 (H1 2007: loss of £425,000) *Strong cash position of £2.3m at end of H1 2008 (H1 2007: £2.0m)


Operating Highlights:
*Consulting division:
- Continued strong demand for consultancy services
- Significant new customer wins
- Consultancy utilisation rate continues at above 85%
- Revenue evenly spread across client base

Software division:
- Key strategic product "Integrity" now live at our reference site client Deutsche Bank
- Investment continues in upgrading our operational control product OCA with new version installed at Tier-1 client
- Recurring revenues up 70%


Commenting on the results, Nigel Walder, CEO of Business Control Solutions Group plc said: "The first half of the year has seen us continuing to progress on our strategic course. The Consulting business has grown strongly in what is widely accepted as a challenging market. We have continued investing in our core strategic technology products and our key balance sheet substantiation product, Integrity, is now live at our first reference site client, Deutsche Bank, providing us with the ability to leverage this implementation and build sales momentum in the Software business in the second half of the year. Cost saving measures taken in H2 '07 ensured we delivered a significant improvement in profit on H1 '07 and our cash position remains healthy. We expect market conditions to remain challenging as we move through the second half of the year for both our Consulting and Software businesses. However, our client base, diversified portfolio and current sales pipeline provide us with confidence that we will be able to successfully navigate our way through these challenging market conditions."

Read the full statement: