ServicePower Technologies trades in line in first half

Mobile workforce management software company ServicePower Technologies posted an update on trading for the six months to 30 June on Thursday, and said trading was in line with management expectations with “positive momentum at the end of the period”.

The AIM-traded firm said this was driven by improved gross margin, with June being EBITDA and net income positive.

Total revenue for the six months is expected to amount to £6.4m, the board said, compared to £6.1m in the previous six months and £6.9m for the comparative period.

Gross margin for the period has increased to 52% from 49% in the comparative period.

Product gross margin for the period was 72%, the board reported, and cash on 30 June was £0.7m, unchanged from a year prior.

ServicePower’s board said number of new deals were signed in the period, and are going live in the third quarter with additional opportunities maturing in the second half of 2016.

The company said it also signed a number of strategic partnerships in order to strengthen its sales reach, including two new partnerships with contract revenue targets for ‘Optimisation on Demand’ totally approximately £3m.

“ServicePower is pleased with the recent momentum that has been achieved, in terms of contract and partner execution,” said CEO Marne Martin.

“We've worked to create additional pipeline opportunities through new channels like Salesforce and contractually committed partners, as well as continued focus on innovating our software platform to meet market requirements.

“The first half of 2016 has further laid the groundwork of our strategy, with further operational improvements. We look forward to increasing EBITDA in the second half of 2016,” Martin added.