Tapping into retail growth

Buoyed by the improving performance of the company’s Microsoft-based activities, revenue growth accelerated from 9 per cent in the first six months of the fiscal year to 17 per cent in the second half to the end of June 2014. Recurring revenue accounted for half of total revenues of £72m and underpinned by a hefty gross margin of 54 per cent, reflecting higher services revenues and improved software margin, this translated to a sharp increase in profits. In fact, add back the £3m charge for amortisation of intangibles and the company's underlying pre-tax profits soared by half to £6.6m to produce adjusted EPS of 18.6p. It also meant the board was able to declare a 25 per cent hike in the dividend to 1.25p a share.