SAP consulting provider Diagonal Plc has announced a revenue decline in its latest financial year, and the acquisition of retail sector specialist Egility Solutions Ltd for a maximum of 2.5m pounds ($4.6m).
In the 52 weeks ending November 28, 2003, the Farnham, UK-based company made a net loss of 4.7m pounds ($8.7m) compared to a loss of 5.7m pounds ($10.6m) the previous year, on revenue that fell 11.5% to 56.3m pounds ($104.5m).
Company chairman Mark Samuels described the performance as disappointing but added: Many of the projects which were deferred last summer are beginning to come back on track and we expect to see the benefits of these improvements, although not until the second half of the year.
Diagonal will pay an initial 2m pounds ($3.7m) in cash and shares for Egility, plus a further earn out worth a potential 500,000 pounds ($928,000) depending on targets being met over the next 12 months. Egility made a pre-tax profit of 200,000 pounds ($371,000) on revenue of 1.2m pounds ($2.2m) in the year to June 2003, and provides SAP services to retail companies including Woolworths and Harrods.
This article is based on material originally published by ComputerWire