21st Century manages to cut losses despite drop in revenue

Transport solutions provider, 21st Century Technology said on Thursday that although revenues continued to decline it managed to narrow its pre-tax losses in the first half of the year.

21st Century posted a pre-tax loss of £266,000 for the six months leading up to 30 June, a 57% improvement on the £482,000 loss it suffered over the same timeframe one year earlier.

However, revenue was on the downturn as it reported a total figure of £5.6m, a 13% skid from the £6.4m it made in 2016.

Causes for the drop in revenue were the group's passenger system division, down from £2.9m to £2.1m, and a flat £3.5m reported by its fleet systems wing.

"The first half was a significant improvement on the previous period, with particular success in bus and international fleet sales which offset lower sales in passenger systems. We have maintained strong working capital controls in order to assist with important projects in the second half. With the capital requirements for these projects now unwinding we are seeing an improvement in our cash balances," said Russ Singleton, chief executive of 21st Century.

Earnings per share were down to 0.28p from 0.51p, equating to just over a 58% year-on-year slide.

The group had £128,000 in cash and equivalents at the end of the half, a serious 160% dive on the £1.16m it was holding twelve months ago, but big contract wins with clients such as Abelio, which manufactures buses for Transport for London, at the beginning of the third quarter could set them on target for a strong second half.

Singleton finished by saying, "In line with our strategy our customer base is growing and diversifying and we are starting to win projects that combine both our Fleet Systems and Passenger Systems. Working from a lower cost base, we are encouraged by our growing pipeline of opportunities and remain confident in our future."

As of 1415 BST, shares had fallen off 11.11% to 3.00p.