Revenues fall, but Sagentia sees cause for optimism
Sagentia, the technology consultancy, revealed a fall in revenues and profits in its interim report, but pointed to improved margins as a source of optimism.
The Cambridge based company announced revenues of £10.7m for the first half of this year, down from last year’s £12.6m.
Pre-tax profits in the period fell to £1.8m from £2m last year, while cash balance went up to £18.9m from £17.7m in 2011, but Sagentia says that the improved margins, 19 per cent compared to last year’s 16 per cent, is encouraging, and places the company in the top end of comparable businesses in the industry.
Consultancy revenues, Sagentia’s bread and butter, fell by £1.1m to £8.8m, while earnings from the medical industry, which Sagentia counts as its most lucrative sector, decreased by 13 per cent from last year due to the suspension of a large project in America earlier this year.
Commercial sector revenues increased by 13 per cent, offsetting the losses from the medical sector.
The company said that the diverse locations of its customers, combined with tight cost controls and a reduction in third party resources has contributed to strong margins, although it does expect the market to remain unpredictable for the foreseeable future.
Sagentia struck a buoyant tone in its interim report and said the company would continue evaluating acquisition opportunities, and the possibility of investing in intellectual property, which would benefit shareholder value in the medium term.