Publishing Technology revenues drop in second quarter

Publishing Technology revenues drop in second quarter

Publishing Technology’s profit and revenue have been significantly hit in the second quarter.

Group revenues were down 10.3% to £7.61m and gross profit dropped 25.1% to £2.18m for the six months to 30th June 2014. However, the company said that “short-term issues” had “held back the results” but the issues had now been “largely addressed”. The firm also said that a recent strategic review had resulted in “a fundamental re-positioning of the group on a far stronger, scalable growth path.”

Publishing Technology, a software and services provider to larger publishing houses such as HarperCollins, McGraw-Hill, OUP and Bloomsbury, announced in March that its c.e.o George Lossius would step down so that a new c.e.o could “focus more on business development and implementation” as opposed to product development. He was subsequently replaced by Michael Cairns, who began a strategic review of the company.

Cairns said: “The strategic review I have undertaken over the past few months focused on two areas: some of the short-term issues the Group faced, which have now largely been addressed, but which as a result will hold back this year’s results; and, building a new vision and approach, designed to improve the Group’s performance and ensure the business is scalable and positioned for growth.

"As a result of the review, the group will now focus on its core skills as a world-class software developer and services provider while looking to switch to working with globally recognised partners to implement its products and services, which will reduce the risk of project implementation, improve utilisation rates and increase sales opportunities geographically and by market segment.”

He added: “This essential re-positioning of the group will allow it to take advantage of positive and supportive market trends. The global publishing industry is undergoing considerable change and publishers are keen to find partners that can help them capitalise on the growth in e-books and commercialise their content digitally.”

The “fundamentals” of the group were ‘strong”, Cairns said, with around 65% of the business being recurring revenue from over 400 publishing and academic customers.