EDP posts strong revenues as it rides out economic storm
ELECTRONIC Data Processing (EDP), has reported “strong recurring” revenues today in its half year results as it strives to overcome an “uncertain” economy.
The Sheffield-based wholesale distribution IT supplier, posted a turnover for the six months to March 31 of £2.93m compared with £2.89m in the same period last year. Operating profit, before non-cash IFRS charges, increased by 7% to £431,000 (2012: £403,000). Pre-tax profit for the six months was up 17% at £424,000.
Michael Heller, chairman of EDP, said: “We have a robust business model, with strong recurring revenues and a carefully managed cost base. Whilst the economy remains uncertain, our customers will remain cautious. However, with our product and financial strength we are well placed for the future.”
The IT firm, which also supplies of sales intelligence software solutions, said: “Whilst trading conditions during the period under review have remained challenging, we have continued to sign new users for our main products, Quantum VS and Vecta. The economic back-drop has created a very mixed picture for businesses in the sectors we address, with some experiencing growth, whilst others continue to face difficulties.
“Our customers continue to recognise the benefits that can be derived from having their software delivered through the “cloud”. Our strategy over recent years has been to increase the proportion of our business delivered through our hosting centre in Milton Keynes and this now represents 44% of turnover (2012: 41%).”
