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Intercede remains in the red despite 'significant' cost-cutting excercise
AIM-quoted cybersecurity company Intercede reported broadly flat losses on Thursday, despite undertaking a cost-cutting exercise that removed "significant costs" from the business.
Intercede saw revenues improve 11% year-on-year to £9.2m, reflecting a "strong end to the year" and growth in the firm's core markets of government, defence contractors and large, highly-secure corporate enterprises.
However, the firm's second-half cost reductions managed to narrow losses just 2.5% to £3.8m as its "continued investment in technology" meant it was unable to claw its way into the green.
Cash balances had crashed 66% to £2.3m at the end of the year.
Intercede's cost-cutting exercises slimmed the firm down to a run rate "more than 20% lower", approximately £3m per year, than it had been at the same time a year earlier.
Significant first-half contract wins from an unnamed UK aerospace and defence contractor and a sale to a large UK defence organization have helped the company following its "challenging" trading year.
The Leicestershire-based company made several changes in the year ended 31 March, bringing in a new chief executive and reorganising its management team.
Chuck Pol, Intercede's chairman, said, "Following the second half restructuring, the cost base has been brought back in line with future forecasts and the Board are confident that Intercede will grow and return to profit within next two years."
As of 1010 BST, Intercede shares had dropped 5.36% to 26.50p.