Staffware Plc, the UK-based workflow automation software house, has doubled its pre-tax profits for the year, but over-hyped expectations have resulted in investor disappointment, and shares dropped 10% on Thursday. The company, which makes half its sales outside the UK, blamed adverse currency effects from the strength of sterling for the shortfall. Net profits for the year to December 31 grew 126% at 1.3m pounds on revenue that rose 75.7% to 17.6m pounds and the Maidenhead based company grew organic revenues by over 7m pounds in the period. Also impressive were sales into the US which increased three fold to $4.2m, and the company has quoted figures from analysts Gartner group which give Staffware a market-leading 25% share of the production workflow software market. The rapid expansion is predictably causing pressure on working capital, aggravated by an unusually high level of trade debtors, and the company was forced to raise a further 1.3m pounds of capital with the placing of additional shares in October. Meanwhile, the company is predicting no end in sight for the expansion of its core markets. The dividend for the year is up 100% at 2.0 pence.
