EU Supply's first half revenues grew by 30% to £1.55m (H1 2015: £1.19m) - up approximately 27% (H1 2015: 25%) on a constant currency basis At 30 June 2016 c.74% of revenues in H1 2016 were of recurring or repeated nature (H1 2015: c.77%) The group said despite the weakening pound, operational costs were held at £2.1m (H1 2015: £2.1m), excluding restructuring costs of £0.1m (H1 2015: £nil). The group said the loss before interest and taxes was reduced by c.27% to £0.7m (H1 2015: £0.9m) and it had a cash balance of £0.9m at 30 June 2016 (2015: £0.4m). Chief executive Thomas Beergrehn said: "Overall trading in the first half of 2016 was broadly in line with the Board's expectations with both revenues and costs being higher than initially expected. "Our costs increased mainly due to the weakening of sterling principally versus the Swedish Krona, but were offset mostly by cost reductions from the Group's cost savings programme announced in January. This programme was fully implemented during the period with the full impact due to be reflected in the second half of 2016. "Our Business Alerts services have continued to grow, the revenues in H1 2016 already exceed the total in FY 2015 and represent a significant part of our revenue streams complementing our CTM™ services business. With new customers joining up, and existing customers adding more chargeable users, we expect the revenue from Business Alert services to continue to grow and provide a significant contribution to overall 2016 revenues. "The Group has a healthy order pipeline for its CTM™ services with small and medium sized new customer opportunities in its current markets. This combined with larger opportunities for enhancements, and continued adoption by existing CTMTM customers with spend-based revenues for the Company, will contribute to further growth into 2017. "The opportunities in the oil & gas and energy industries are also progressing with revenues expected in 2017 and beyond. In addition, the discussions with a large German IT services group with a strong presence in Germany continue with a distribution agreement expected to be in place in the second half of 2016. "The weakening of sterling has affected us negatively on the bottom line. However, the Board believes that the measures taken in the first half of 2016, when combined with the strong pipeline of opportunities, will result in operating profit on a monthly run rate basis being achieved during the second half of 2016 in line with the Board's expectations. "In addition, we expect the Company to report results for the year ending 31 December 2016 in line with market expectations, assuming no further significant weakening of Sterling, and to achieve a first annual operating profit in 2017."
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