Sopheon expects earnings to be ahead of expectations

Software and services provider Sopheon posted a trading update on its performance for the year to 31 December on Monday.

The AIM-traded company said that, at the time of the interim report issued in August, it reported encouraging continued progress with the company, and reiterated the positive shift in the momentum of the business that had started the previous year.

“We are very pleased to report that this continued to translate into a strong performance in the second half of 2016, driven by a large number of license orders in the final quarter, including substantial activity with major enterprise customers,” the board explained in a statement.

“In addition to the effect of the stronger sales performance, the profitability of the business was further enhanced by cost efficiencies over the course of the year, and to a lesser extent by foreign exchange gains linked to the sharp fall in sterling.”

As a consequence, the board said it expected that reported revenues for the year ended 31 December would be in line with current market expectations.

“The board also expects that, even when excluding the impact of the positive foreign exchange effects, EBITDA will be ahead, and pre-tax profits significantly ahead, of current market expectations.”

Sopheon said it intended to issue its results for the year ended 31 December on 23 March.