Vislink has materially widened its H1 pretax loss to £32.2m, from a year-ago loss of £881,000. The loss included a write-off of inventory and capitalised development costs leading to adjustments of £6.3m, and another of goodwill and acquired intangibles leading to an adjustment of £23.3m. Revenue was lower at £22.6m, from £26.6m. "We continue to see significant underlying organic growth in our software business with a strong order intake which has carried through into H2," said executive chair John Hawkins. "The long term prospects for Pebble Beach Systems continue to improve as we augment our core enterprise software solutions with cloud enabled software applications. "We also have a pipeline of partners and software bolt-on acquisitions which will further enhance the Group strategy of building a high margin, cash generative software business. "In its core broadcast market Vislink Communication Systems has seen a reduction in spend from broadcasters as they divert budgets from building infrastructure to investing in content. A technology shift to IP infrastructures has also delayed key buying decisions. "With this background and with a desire to increase the efficiency of VCS and ensure that we build a cash generative sustainable and profitable business we have taken a number of decisive actions as part of our business improvement plan, including the move of the VCS finance function to Head Office leading to improved cash collection. "We will continue to re-evaluate implementation of the business plan as trading progresses into H2."
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