Horizon Technology has reported a 5% increase in revenues for 2005 from €281m to €294m, as the company's trading profit rose by 7% to €9.1m from €8.5m.
Horizon saw a 10% increase in earnings per share to 9.73 cent and said it expects modest market growth to continue.
The company said its enterprise solutions division had a very strong performance as revenues there increased over 10% and trading profit jumped 12.8%. This division now accounts for 88% of the combined trading profits of its two divisions. Horizon said this trend is likely to continue.
Its distribution and channel services business had what Horizon calls a 'challenging year' with intense price competition, continued volume increases, unit price depreciation and margin contraction. This resulted in a revenue fall of 3%.
Over the past 18 months, Horizon has entered into new deals with IBM, EMC Corporation and Veritas Software Corporation in the UK. In Ireland, it has agreed new deals with BMC Software, Acer Corporation and O2.
Horizon said it expects modest market growth will continue with some growth-based investment in technology by corporate customers. It said that large organisations are positive on their expectations on future IT spend. It said this will vary by industry sector, and is likely to be strongest in the mobile telecommunications sector.
'Rigorous cost control and the group's ability to leverage growth in earnings from greater utilisation of operational capacity provide an opportunity to convert even modest turnover growth into superior returns for shareholders', the company said.
Horizon shares were down ten cent to €1.13 in Dublin this evening.
