Tessella, a privately owned technology and IT services player has just released its results for the year to March 2010. It is clear from the figures that, after seeming to ride out the storm in the previous year, 2010 was impacted adversely by the global economic downturn. Revenue for the year was down 9.2% to £15.8m although profits were flat at £0.9m.

Revenue from the key public sector and life sciences verticals was down 5.4% and 12% to £4.0m and £4.9m respectively and revenue from the key Digital Preservation service line was 27.3% lower. Partially offsetting this decline were the consumer industries and energy verticals that grew 31.2% and 32.1% to £2.1m and £2.5m respectively. The regional revenue mix remained at the same level with 68% revenue from the UK, 17% from the US and the remainder from Europe. Looking at cash flow, higher working capital investment impacted conversion and net cash at the end of March 2010 was £1.1, down from £3m in FY 2009.

First thoughts

Whilst it is disappointing to see Tessella’s impressive growth track record interrupted (Premium Plus subscribers can click here to view more detail on the company’s financials), we still get a sense of clear strategic direction in the company, which remains profitable and financially sound. Tessella operates in high value niche areas with a clear vertical market focus and we would expect the business bounce back at least in line with the economy.

For more breaking news visit www.megabuyte.com

This entry was posted in Coverage, News & Events.