Hull-based systems integrator Radius Plc disppointed its fans with a pre-tax loss for the six months to May 31 of UKP466,000, which it says was arrived at after providing for UKP146,000 in rationalisation costs, and compares with UKP525,000 pre-tax profit for the corresponding period last year. The company blames difficult trading conditions, particularly in the first three months of the financial year, which caused turnover to slide 21% to UKP10.7m. Despite this, the company is still paying an interim dividend, albeit one halved to 0.45 pence per share from 0.9 pence. The fall in turnover is attributed principally to a further decline in hardware sales and poor trading conditions in relation to computer services provided to the mainframe sector. The decline was partially offset by a rise of over 23% in the sale of packaged software products. The level of support services revenue also improved such that these annually contracted services represented 44% of turnover. The decline in hardware sales and the increase in annual recurring support services revenue reflect the continued change of profile in group revenues, Radius notes. Looking on the bright side, the company says that it has maintained a strong balance sheet with net assets of over UKP5.2m and net cash of over UKP2m. In view of the first half performance, the company says its board has moved quickly to reduce costs further in relation to mainframe service activities, for which adequate provision has been made. It looks for performance to show an improvement in the second half and remains confident of the strength of products and commitment of the staff.
