Adept4 begins cost cutting after profit margins contract

IT outfit Adept4 expects profits to have slipped in its last trading year after reduced margins cut into its revenues.

While the AIM-listed outfit told investors on Friday that revenues were expected to be "broadly in line" with those recognised a year earlier, a drop in gross profit margin of five percentage points to 56% meant that EBITDA was £600,000 - below the £1.2m achieved a year earlier.

Adept4 kicked off cost rationalisation programme during the second half of the year as part of its efforts to ensure the business had an appropriate cost base but only had a minimal impact on reducing costs for the full-year.

As of 30 September, there was £1.4m cash in the bank, with group net debt of £2.7m.

Looking forward, Adept4 said its focus remained on developing and converting its sales pipeline and building on "the stable platform" it had put in place in order to grow profitability.

As of 0850 GMT, Adept4 shares had sunk 28.57% to 1p.