StockMarketWire.com - Business consultancy and systems group Triad entered the red for the six months to September, reporting a 15% drop in revenue to £14.1m and a loss before tax of £0.41m versus a previous small profit.
Triad said the economic downturn had resulted in delays to procurement decisions and cuts in IT-related expenditure of both new and existing clients. The contractor market had been particularly affected by falling demand.
A decrease in utilisation in the consultancy business and pressure on fee rates and margins had impacted operating margins. Headcount and other cost reductions had resulted in annualised cost savings of circa £1.15m.
Net borrowings at 30 September were £1.27m, up from the 31 March figure of £0.61m. The group said it continues to operate comfortably within its bank facilities.
Interest in the group's new location intelligence software, Zubed, had remained high. 'Accordingly, although some buying decisions have been delayed, our investment in Zubed has continued.
'With a substantial level of investment to date, we have started to see revenue growth in what are large and untapped markets.'
Story provided by Business Financial Newswire
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