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BOND INTERNATIONAL: Disappointing trading update and the share price takes big hit
Posted 09/12/09
The specialist provider of software for the international recruitment and human resources industries, issued a disappointing trading update for the year ended 31 December 2009.
Since the announcement of its interim statement in September, the group has seen a deterioration in trading conditions in some of the markets in which it operates.
There has been a decrease in order intake from existing clients and a number of key contracts which the group had expected to sign in 2009 have been deferred. In addition, a number of major implementations in progress have been delayed or elongated as a result of the changing circumstances for the group’s clients. The faster than expected change in the business model from capital sale to rental and Software as a Service (SAAS) has made the shortfall appear worse. These issues will have a negative impact on the Group’s outcome for the year, although nothing was quantified.
Broker estimates for the year ending December 2009 were for pre-tax profit of £3.2m, eps of 6.80p and dividend per share of 1.6p.
Revenue for the 6 months to 30th June was £17m and operating profit after amortisation of intangibles £845,000. Cash generated from operations from £1.7m
Management drew attention to a number of indicators which point to more favourable conditions ahead. The group has a record level of recurring income across all divisions, and its business development teams are beginning to see a greater number of enquiries from prospective clients looking forward into the new year.
Results for the year ended 31 December 2009 will be out on 14th April 2010.
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