ReadSoft UK, an established player of document capture and accounts payable automation employs approximately 31 people and reported revenues of £3.876m in 2005, a decline of 29% from £5.475m in 2004. Increased competition was given as a reason for the revenue decline. Since then changes have been brought to senior management and sales force has been realigned.
In terms of profitability, company reported operating loss of £433k (2004: £609k positive), net loss of £301k (2004: £367k positive) and retained profit of £973k (2004: £1,274).
However, during the period, highest paid director’s income increased from £147,000 to £177,000 with pension contributions remaining at £17,000.
Company succeeded in increasing the working capital by reducing debtors to £3,081m from £3,162m whilst increasing creditors to £2.477m from £2.180m. Ah! perhaps something for which ReadSoft can be congratulated. Well not quite! This occured mainly due to better management of capital associated with group undertakings.
Watch out for post #2 for analysis of products and solutions.
Update 1:
Here is a quick graph showing the last 8 yrs revenue performance, and year-on-year growth/decline.
Sources: Annual Report, 2005 + FAME database | Disclaimer: Information collected during meetings held on behalf my clients are excluded. All information covered originates from the Internet.
Tags: Readsoft, Document Capture, Accounts Payable,