Escher Group forecasts lower full-year revenues

Revenues at Dublin-headquartered Escher Group are expected to be down 15 per cent year-on-year in 2014, according to an interim trading statement released on Wednesday.

The company, which is a provider of outsourced, point-of-sale software to the postal industry, said the decline in revenue was primarily due to a failure to conclude a sizeable licence agreement before the end of 2014. It said negotiations on the agreement are continuing.

Overall, group revenues are forecast to be down 15 per cent while adjusted earnings before interest, taxes, depreciation, and amortisation (ebitda) for the year ending December 31st 2014 will be materially below current market expectations.

"The second half of the last financial year has been disappointing as considerable pipeline activity has not yet converted into finalised agreements. However, we remain in a strong position going forward, given our product portfolio and international pipeline of opportunities," said Escher's chief executive Liam Church.

Escher Group was founded in 1989 in Boston and moved its headquarters to Ireland in 2007 following a management buyout.

Revenues for the first six months of 2014 were up 48 per cent to $12.8 million (€9.7 million) from $8.6 million year-on-year, according to figures released last September.

Point-of-sale software to the postal industry, posted pre-tax profits of $1.08 million for the six months to the end of June, down from $1.15 million for the same period a year earlier. Operating profits also declined, from $1.44 million last year to $1.36 million in the first-half of 2013.

Revenue from support contracts increased by 2 per cent to $1.46 million, while revenue from maintenance contracts increased by 4 per cent to $2.68 million. The group’s net debt was $4.64 million at the end of June.

Adjusted ebitda at the company grew 27 per cent to $2.39 million, while basic earnings per share amounted to 4.1 cent.