Shares digital

Clarity Commerce Solutions (CCS:AIM) – Interims PTP: -£1.36m (£0.06m) Divi: n/a (n/a)

A number of key order wins give some grounds for optimism for the coming year at the software and services expert, after a year of boardroom strife and disappointing trading. But cash remains tight at the Basingstoke firm, even after a £340,000 property disposal, and the newly overhauled executive team hopes to secure fresh funding by the end of March.

Although Clarity racked up a £1 million interim loss, the £6.6 million cap did record a profit through September to November as new managing director Ken Smith’s restructuring efforts began to bring rewards. Under Smith, who took over the reins in September, Clarity has been restructured into four distinct divisions, to cut costs and improve the focus of product development. Each unit sells into one clearly defined customer base, namely leisure, hospitality, retail or ticketing.

After a rocky start, performance has also begun to improve at Total Hospitality Solutions, which was acquired for a maximum of £4 million last spring, when it became Clarity’s ninth acquisition in seven years.

Last April’s thumping profit warning prompted certain shareholders to try and remove the two executive directors who then ran Clarity. An EGM in May saw the attempt fail but business development director Peter Walker subsequently retired, while chief executive Graham York was finally removed from the board in December. In addition, non-executive chairman Tim Bittlestone also retired.

The shares remain mired at 26.5p, an all-time low in the firm’s seven-and-a-half years as a publicly listed entity.

Shares says: Some signs of a recovery but wait until the funding picture is clearer.

by: Russ Mould