Publishing Technology’s results for 2014 are “disappointing”, the company’s chairman Martyn Rose has said, but “highlight the degree of change” the firm has undergone.
Results reported for the publishing software and services company show gross revenues were £14.4m in 2014, down 15% from £16.9m in 2013, while gross profit was £1.6m in 2014, down 72% from £5.8m in 2013. The company made a pre-tax loss of £4m, compared to a profit of £0.7m in 2013.
In his report Rose said that 2014 was “a year of considerable change in our business”.
Publishing Technology’s former c.e.o. George Lossius stepped down from his role in March 2014, and was replaced with Michael Cairns in April.
Cairns carried out a strategic review of the business, which resulted in a restructure based on “global skill-sets rather than in individual product silos”, Cairns said in his report accompanying the results. He said that during the strategic review “it became readily apparent that we had recently made certain critical business management mistakes and then failed to react to the problems these mistakes caused quickly enough”. But Cairns said the right changes had now been made to ensure the business’ future success.
“Having been in the c.e.o. position for almost 12 months, I believe that we have made the right decisions in restructuring the business, hiring the skills we lacked, building procedures to avoid estimation errors and implementation issues, and fixing or extracting ourselves from loss-making contracts,” wrote Cairns.
“All of this has been challenging but we have made good progress and I am confident that our products are in good shape and demonstrable, that our services are clearly understood, and that we have the right team to deliver real growth in revenue and profit across the business.”
Rose also announced that Publishing Technology will try and raise £9m through a share placing. The money will be used to provide working capital to scale the business and to pay down its existing debt.