EDP facing cautious customers

ELECTRONIC data processing has warned that its customers remain cautious because of concerns about the UK economy.

The business, which supplies sales and inventory management software, stressed it was in a strong position with £4.7m on the balance sheet at the end of July.

Updating shareholders, the Sheffield-based company said: “Trading conditions remain broadly similar to those experienced in the first half of the financial year. Continued uncertainty in the UK economy means that businesses operating in the sectors we address remain cautious.

“We expect our customers to remain cautious whilst there is significant uncertainty in the UK economy.  However, our business model remains strong and with our strong product offering we are well positioned for the future.”

EDP described its recurring revenues position as “strong” with income from software license fees and hosting charges representing 775 of turnover.

In May, EDP recorded a rise in interim revenues of 5% to £2.89m while pre-tax profits fell from £497,000 to £363,000.