Agresso results show weakened UK market

Unit 4 Agresso has released its first half year results which show a total revenue decline of 2%. This equates to 187.1m Euros (£164.6m) a drop from 190.5m Euros in the first half of 2008.

The company has said results are in line with expectation and shows that revenues from contracts (maintenance and subscriptions), rose by 11% to 88.2m Euros compared with 79.7m Euros in H1 2008.

A statement by the company said: 'The poor worldwide economic climate continues to affect licence income and although companies are showing interest in efficient operating software, decision-making processes have been extended by a reluctance to invest at present.'

'As a results licence earnings decreased by 21%. However June saw a strengthening in licence earnings not only by Agresso Business World but also from the CODA products and the Benelux solutions, which is encouraging,' it added.

Agresso blamed the decline in revenue on the UK market, stating: 'The capacity cutback in the United Kingdom was largely responsible for a revenue decline of 4%.'

The company also hinted that the market was tough in Germany with revenues from the country down 4% on the same period last year. The company made large investments into the German markets in 2008 and hopes the numbers will rise in the second half of the year due to a number of orders in the pipeline.

The CEO also announced Agresso has spent 1m Euros in the first half of the year to establish its Coda2Go, online software service, in the USA. It acquired the UK company, Coda, in 2008 which produces Coda2Go and is largely aimed at offering accounting technology to the public sector.

Chris Ouwinga, Agresso CEO, said: 'Economic circumstances continue to make it very difficult to predict market demand for the whole of 2009.

'In 2009, Unit 4 Agresso is also concentrating on internal measures such as achieving synergies through cost economies and restructuring. Meanwhile, restructuring measures have also been taken in risk areas such as Spain and the United Kingdom.'

Further reading:

Agresso reports drop in licences