7Digital meets profit target as it benefits from strong dollar
Business to business music and radio company 7Digital met its profit target for the year, aided by a strong dollar against sterling, while it won new contracts.
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The AIM-listed company achieved its objective by returning an operating profit for the final quarter, as it traded in line with expectations for the year due to a modest gain from the strength of the dollar versus sterling.
Revenue for the year ended 31 December grew 7.2% to £11.1m, while it also met its target of reaching £1m worth of const savings by the end of 2016.
The company had £730,000 in cash by the end of December.
Recently the company was awarded contracts worth about £1.6m, including set up fees and monthly recurring revenues, from a number of sectors, such as mobile telecommunication services, radio, high resolution and automotive. It also signed a further label development deal, so the company is now working with all three of the major record labels.
The company said that it is making progress in high resolution audio, as the MQA streaming technology, which 7Digital uses received “significant attention” at the recent Consumer Electronics Show in Las Vegas.
Chief executive Simon Cole, said: "The second half of our financial year 2016 was always an important time for 7Digital and I am pleased that we delivered on our commitment to reach operating profit by the year end and continued to make good progress in line with our stated strategy.”
He added that the new year has started well for the company and he is confident that it will be profitable at operating level for 2017.
Shares in 7Digital were down 1.08% to 9.15p at 0937 GMT.