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View All NewsUK – Bond International Software reports strong operating profit growth
Bond International Software (BDI: LSE), a provider of software to the recruitment industry, reported revenue of £18.4 million for the six months ending 30 June 2014, an increase of +8% compared with £17 million last year.
Gross profit for the period rose by +5% to £15.9 million, up from £15.1 million during H1 2013. Operating profit rose by +47.1% to £815,000 during H1 2014, up from £554,000 a year ago.
Steve Russell, CEO of Bond International Software, commented: "The ongoing economic recovery in the UK and overseas is having a positive impact on the group. Not only are we seeing robust growth levels returning in the UK but also we have made substantial headway in our Asia-Pacific office.”
“The acquisition of Eurowage was a significant step change for the group and the Board believes this will produce good growth prospects. We maintain our confidence that we are well placed to benefit from global growth and combined with our continued innovation in our products and services we see a positive second half for the group," he added.
Revenue from Recruitment Software rose by +3.9% to £9 million up from £8.7 million last year. According to the company’s statement, the UK staffing software business reported an increase of +10% in total revenue, with licence sales up by +144% and the sale of consulting services up by +21%, compared with last year. The Asia Pacific business reported a +47% increase in revenue following the announcement of a major contract earlier this year. The company’s Japanese operation are expected to become profitable for the first time in the second half of 2014.
Outsourcing, one of Bond International’s other revenue streams, reported revenue growth of +20.9% to £6.9 million, compared with £5.7 million during H1 2013. The only division to report a decline, compared with last year, was HR & Payroll Software, which declined by -6.3% to £2.5 million, down from £2.6 million a year ago.
In April 2014, Bond International announced the acquisition of international HR & payroll company Eurowage, for a total consideration of £8.5 million and a further consideration, contingent on the financial performance of the company in the three years following completion of the acquisition.
Geographically, the UK remains Bond International’s largest market, with revenue of £13.8 million for the six months ending 30 June 2014, an increase of +11.6% from £12.4 million last year. Revenue from Asia Pacific rose by +47.6% to £965,000 during the period, up from £654,000 a year ago.
The only region to report a decline in revenue was North America, which fell by -9.5% to £3.6 million, down from £4 million in H1 2013.
Martin Baldwin, Chairman of Bond International, concluded: “…trading conditions are good in the major markets in which we operate and the group is benefitting from the ongoing economic recovery. With the Japanese operation becoming profitable in the second half of 2014 and a full six months of revenue and profits from Eurowage Limited the board remains confident about the prospects for the full year and confirms trading remains in line to meet market expectations for the full year.”
In trading today, the company’s share price rose by +2.2% to £1.18, an increase of +60.7% compared with last year. Based on its current share price, the company has a market value of £43.2 million.