StockMarketWire.com - Technology company ProPhotonix Limited swung back into profit in 2019, according to its financial results - but has warned of considerable uncertainty ahead due to the impact of Covid-19.

Operating profit for the year ended 31 December 2019 was $1.1m, compared to a loss of $1m in 2018.

Revenue in the second half of last year increased by 8.9% over the first half with bookings increasing 30% over the same period, the company said. Cost reductions initiated in the first half carried through the second half contributing to the overall improved profit for 2019.

However, the unknown impact of Covid-19 remains a potential major headwind for the company. The directors warned that in 'certain severe but plausible downside scenarios', such as a second wave hitting revenue above the company's base case forecast, or a decrease in gross margins and increase in debtor days, there was a risk that ProPhotonix could breach its loan covenant.

As of 31 July 2020, the company had $2.07m in cash and an outstanding loan of $0.55m.

At 8:17am: [LON:PPIX] ProPhotonix Limited DI share price was -0.05p at 1.25p



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