This performance further validates our belief in Eyretel’s technological and service superiority. It is clear that the Group’s global leadership in providing customer interaction recording and analysis capability continues to attract strong investment by companies wishing to optimise their customer relationships.
Turnover for the six months grew 28% to £24.2m (2000: £18.9m). Improved gross margins and tight cost control allowed the Group to move into profitability six months ahead of plan with a profit before tax of £0.1m compared to a £2.5m loss before tax for the same period last year.
Gross margin for the period grew to 60% (2000: 54%) largely due to improved utilisation in the professional services business, which ensures customers get the maximum benefit from our solutions.
The Group achieved growth through all product streams. The product split was software (systems and applications) 44%, platform hardware 29%, professional services 27%.
In addition the balance sheet remains strong with net assets of £45.0m of which £30.7m is cash or cash equivalent ensuring the Group is well positioned to support its future growth strategy.
The Board believes it is in the shareholders’ best interests to continue to invest its financial resources in the business and therefore do not recommend a dividend for the period.
As a measure of the success of its international expansion and strength as a truly global business, the Group now derives over 53% of its revenues from outside Europe compared to 41% for the same period last year. The revenue split between the
Americas and Asia Pacific was roughly even at 25% and 28% respectively, decreasing the reliance on any one region’s economy and allowing the provision of
global solutions and service to international blue chip customers. The existing customer base accounted for over 50% of the Group’s product sales in the period demonstrating that our solutions have a proven and compelling return on investment that drives customers to roll out Eyretel products beyond their first implementation.
Revenues from the Americas increased 74% driven by a 51% growth in North America and a large increase in South American revenues following the creation of a base last year in Brazil. Our North American business continues to execute successfully its strategy of focusing on the rapidly growing and high value contact centre recording and analysis market which now represents nearly 90% of US revenues. During the period 17 major US companies became Eyretel customers.
We are particularly pleased with the performance of our Asia Pacific business where revenues grew 56%.
The region has succeeded in increasing its overall market share and revenues in a highly competitive market.
Our European business performed well with UK revenues up 11% over the same period last year.
While Continental European revenues were down, this was chiefly due to a large single order last year which distorted the numbers. The underlying performance was good with some strong customer and partner success. The Central European management team has been further strengthened with the appointment of a senior executive with a strong call centre application background.
The Group continues to invest in its future through innovation and product development. The ability of vendors to provide products for and demonstrate a clear migration path to IP telephony is becoming an increasingly important basis of investment decision for many customers. We are extending our leadership in this important sector with products that will broaden the addressable market for the Group. Another area of focus is in the measurement and linking of the performance of the contact centre with business objectives. Capturing and delivering value from the interactions between customers and our clients has driven Eyretel’s product strategy and is proving to be the source of continued success of the Group.
