Infoserve improves operating profit despite Google move

CHANGES by Google have hit revenues at e-marketing services company Infoserve.

Infoserve, based at Leeds Bradford International Airport, said its performance for the year ended March 31 2012 had been affected by challenging trading conditions.

The local search specialist said changes to algorithms by Google had affected the rankings of its Cityvisitor directory and also revenues at its AdSense arm.

The reduction in revenue was also down to a restructure which saw Infoserve leave the Alternative Investment Market last year and also reduce the number of sales staff it employs.

Operating profit increased to £586,000 before exceptional items on revenues of almost £5m. Revenues were down from £5.6m the previous year.

In its annual report, the company said: “Despite the more efficient business model, trading remains challenging, with income from Google having reduced by £184,000 from the prior year as a result of changes to the Google Algorithm.”

However, this was offset by a £200,000 rental saving after a major shareholder decided to waive rent at the company’s facility in Darlington.

Infoserve said it may look to raise further funds in the future in order to exploit opportunities.