Losses narrow as revenue improves at Nasstar

Hosted managed and cloud computing services provider Nasstar announced its unaudited interim results for the six months ended 30 June on Monday, with revenue up 6% year-on-year to £12.5m.

The AIM-traded firm said 91% of first half revenue was generated from contracted recurring services, down slightly from 92% a year ago.

EBITDA was ahead 33% compared to the same period last year at £2.8m, with adjusted EBITDA rising 16% to £3.0m.

Nasstar reported a 65% reduction in its operating loss to £0.3m, with its adjusted profit before tax improving 24% to £1.8m.

It saw a 58% narrowing in its reported loss before tax to £0.4m.

The company’s net cash position remained stable at £0.9m from the 2017 year-end.

Adjusted earnings per share were 0.3p for the six month period, up from 0.2p year-on-year, with its basic lossed per share standing at 0.1p, narrowing from 0.2p.

“2018 saw the first year of operating under our new organisational structure and this combined with three large projects has really tested the team, which I am delighted to say has responded to the challenge,” said Nasstar chief executive officer Nigel Redwood.

“We have invested in the technical delivery teams to increase project throughput whilst continuing to focus on the "Nasstar 10-19" strategic initiatives.”

Redwood said the company was currently in year two of its three-year plan to achieve full integration and consolidation, and he claimed to remain confident in the ‘Nasstar 10-19’ objectives.

“I have worked closely with the new business team to develop a sales pipeline that continues to include deals of larger size and believe Nasstar is perfectly positioned and better structured to deliver on projects of increased complexity and size.”