(RTTNews) - Financial crime and compliance software provider Norkom Group Plc (NORK.L: News ) Tuesday reported an increase in profit for the first half of fiscal 2010, benefited mainly by increases in its professional services and post contract support revenues.

For the first half, the company's profit before taxation was EUR 3.18 million compared with EUR 2.78 million in the prior-year period.

Profit attributable to shareholders rose to EUR 3.17 million from EUR 2.18 million in the comparable period prior year. On a per share basis, earnings were 3.43 cents versus 2.40 cents a year ago.

Adjusted earnings for the period were EUR 3.91 million or 4.22 cents as compared with EUR 3.59 million or 3.95 cents in fiscal 2009. Adjusted results exclude amortisation and non-cash charges.

Revenues for the six-month period increased 2% to EUR 24.60 million from EUR 24.18 million in the first half of fiscal 2009. The company said its current clients contributed more than 89% of its revenues with the remainder generated from new contracts with eight new clients, which were secured in the first half of fiscal 2010.
Norkom's revenues from professional services were EUR 16.16 million, up from EUR 15.64 million last year, post contract support/other revenues rose to EUR 3.31 million from EUR 2.27 million, while license revenues dropped to EUR 5.14 million from EUR 6.27 million a year earlier.

By geography, revenues from Europe rose 15% to EUR 5.8 million from EUR 5.0 million, revenues from Ireland, UK and rest of the world were EUR 4.93 million compared to EUR 4.30 million, and Asia Pacific revenues were up to EUR 4.95 million from EUR 4.56 million last year. However, North American revenues for the period declined 13% to EUR 8.9 million from EUR 10.3 million a year ago, as one of the company's key US clients entered Chapter 11 bankruptcy in the US in September 2008.

During the six-month period, amortisation of intangible assets was lower at EUR 582 thousand compared EUR 826 thousand in the 2009-year period. Research and development costs for the period were EUR 3.64 million versus EUR 3.72 million, and sales and marketing expenses fell to EUR 4.49 million from EUR 4.72 million in the previous-year period.

In Tuesday's regular trading session, NORK is currently trading at 109.50 pence per share up 1.50 pence or 1.39% on the London Stock Exchange.

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by RTT Staff Writer

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