Revenues narrow but earnings improve at SimiGon

Simulation solutions company SimiGon announced its interim results for the six months to 30 June on Monday, with net profit increasing by 5% to $0.83m and profit before tax improving by 2% to $0.81m.

The AIM-traded firm posted revenues of $3.29m, narrowing from $3.46m, though its gross margin improved to 78% from 75%.

Basic and diluted earnings per share were in line with the first half of 2015 at two US cents.

“Continuing to execute our growth strategy, I am pleased to report another period of increased profitability,” said chief executive Ami Vizer.

“During the course of this first half of 2016, we have been awarded with new high value contracts and further established our position as a prime contractor providing a highly valued solution to our customers.”

Vizer said looking ahead, SimiGon will continue to leverage its position in the market and its global footprint to build new partnerships, expand its customer base, and target large contracts.

“The company is continuing its transition into high value, long term license contracts in order to meet market requirements.

“Though it may lead to lower revenue from these contracts in the early years, it is expected to give SimiGon much better revenue and profits visibility in the long term.

“Having unique distributed training systems and proven technology applicable for multiple domains and devices together with a business model that allows creating partnerships and relationships with blue chip corporations, the board enters the second half of 2016 with expectations to deliver growth over the long term,” Vizer explained.