Banking software specialist Intelligent Environments (IE) felt the effects of lost contracts last year with flat full year revenue and a 25 percent dent in operating profits to £860,299.
IE continues to bolster its key online transaction-based recurring revenue streams. Last year saw 4 new customer wins, twice that of 2008, including going live in October with National Savings & Investments. These plus new contracts signed since the year end, with HRG and Vanquis Bank and a credit card deal with Orange. will see repeat business rise from last year’s 30 per cent of total revenue.
Mobile banking is also exciting, going live in May with an unnamed high street bank via an iPhone application, while Google, Windows and Blackberry applications will follow soon. In the US roughly 30m people already bank using mobile devices and IE is thought to be talking to 30-40 mobile operators currently.
IE still has a decent cash pile, up 10 per cent to £1.1m, and that could be used for acquisitions going forward says chief executive Philip Blundell.
Canaccord forecasts £1.2m of pre-tax profit and EPS of 0.72p in 2010 (£0.9m and 0.54p for 2009).
Undercover Columnist says:
Shares 12 per cent fall on the day reflects previous day’s 17 per cent jump, but accelerating bottom line growth means 2010 PE of 13 is not expensive.