Razor Risk Technologies' trading has continued in line with the actual results achieved in the first half and revenue for the full year will exceed $18 million, subject to completion of June's results to forecast.
This is 35% higher than the prior corresponding period.
Client gross margins have significantly improved throughout the year and annualised operating costs continue to be tightly managed. Net profit for the full year is anticipated as exceeding $1.4m after allowing for $200k of potential bad debts from Timbercorp (in Administration) and after expensing the costs associated with de-listing from AIM and marketing costs associated with the change in name of the company. Cash generation from operations continues with cash in hand at year end forecast at around $3.0m. Razor Risk Technologies operates without any debt.
Andrew Wood, Chief Executive Officer, Razor Risk Technologies, said: "The year to June 2009 will prove to be a challenging but ultimately very successful year for Razor Risk Technologies. Razor Risk Technologies continues to secure new business across global regions and the superiority of Razor's real time risk management offering, and the experience of our consultants means we are well positioned to meet this continuing demand. The global financial crisis has demonstrated that traditional risk management systems and the use of legacy technology has not been sufficient to cope with either the growth of capital markets or the changing regulatory environment. As a result, we are seeing new market forces drive demand from financial institutions across all global regions for greater and more effective risk measurement and control systems".
Ellis Bugg, Chairman, Razor Risk Technologies, said: "The Executive team under the new Chief Executive has executed the strategy to refocus our business on the core Razor product whilst applying more rigor and discipline in all operations.
"Despite the very testing market conditions, this has seen a significant improvement in gross margins and we have also consolidated property costs as well as exited from AIM in the UK. The full effect of these initiatives will be seen over the course of the next year".
He then added, "The move to full year profitability and positive cash flow are important steps along the path to moving the company to a position of where it will be able to reward shareholders for their support during the difficult product development and market penetration period".
The full year audited financial statements are scheduled to be released to the market in the second week of August 2009.