Horizon Technology Group has reported a pre-tax profit of €4m for the six months to the end of June, up 20% from the figure of €3.4m the same time last year. The company said this was the seventh consecutive half year of growth and the six month period saw a continuation of the recovery in the IT market that began 18 months ago.
Diluted earnings per share for the half year rose to 4.51 cent from 3.85 cent.
Revenues fell to €148m from €151m the same time last year. The company said that revenue in its Enterprise Solutions division increased 12% year on year, while revenue in its Distribution and Channel Services division fell by 18% year on year.
The group said that it continued to focus on cost control and efficiency gains during the six months, liming growth in operating costs to 3.3% year on year.
Horizon said its cash flow and financial position remains strong. Net debt at the end of June was €6.7m compared to €8.1m at the corresponding time last year.
It said that it has continued its strategy of developing new partnerships with global IT vendors and during the first half of 2005, it entered into new partnerships with EMC Corporation, Veritas Software Corporation and Acer Corporation.
Horizon said it anticipates that the market recovery which began 18 months ago will continue and that there will be a greater level of growth-based investment in technology by large corporate customers. It said that this will vary by industry sector and is likely to be strongest in the mobile communications sector in the next 12 months.
'As the global vendors focus on their own internal core competencies and cost reductions, they are increasingly outsourcing technical services, marketing and supply chain functions to channel partners. Horizon is uniquely positioned to address these emerging market trends,' the company said.
Shares in the group closed up two cent to €1.20 in Dublin.
