Norkom revenues rise 17% to €48m

Dublin-based software company Norkom has reported a modest rise in pretax profits for the year ended March 31st, despite a 17 per cent increase in revenues to €48 million.

The company, which produces software for the banking sector to guard against financial crime, said earnings before interest, tax, depreciation and amortisation (EBITDA), rose 14 per cent to €8.2 million.

Adjusted earnings per share rose 43 per cent to 7.69 cent. The company said revenues were boosted by the acquisition of Digital Harbour in July 2007.

The company added 16 new clients over the period, including three of the world's largest banks and said it had secured its first deal in the Middle East with Dubai Islamic Bank.

Norkom said the fact that it had expanded last year despite the turmoil in the banking sector was testament to the resilience of the company's business.

While decision-making by banks and financial institutions in the US and UK were being hampered by the credit crisis, Norkom said it had secured contracts with companies based in Germany, Scandinavia, Singapore and Indonesia.

Revenues from the Asia Pacific region rose by 76 per cent to €7.9 million and grew by 12 per cent in North America. However, Ireland and the UK recorded a 10 per cent fall in revenues to €8.1 million, "reflecting the decline in sterling during the year".

Foreign exchange transactions had a €2.1 million negative effect on reported revenues and a €1.7 million impact on operating profit.

Given the uncertainties in the financial markets Norkom said it would seek to conserve capital this year and forecast "low single digit growth" this year.