Aepona Group pretax losses rise 44% to £11m

AEPONA GROUP, the Dublin-registered holding company for Belfast telecoms software firm Aepona, incurred a £11.17 million (€13 million) pretax loss in 2007, according to its filed annual report.

The report to December 31st, 2007, was recently lodged with the Companies Office and reveals the group’s pretax loss increased by 44 per cent compared to £6.17 million the previous year.

However, turnover jumped by almost 30 per cent to £9.69 million compared with £6.86 million in 2006.

In the filed report, Aepona Group directors said overall operating costs grew during the year, primarily from the acquisition of Swedish player Appium in June.

“In the second half of 2007 we worked through the comprehensive integration process, which enabled us to make substantial cost savings at our Swedish operation, the full cost-reduction impact of which came through in early 2008.”

Directors added that gross margins during 2007 were affected by lower margins on third-party products. “We are pleased that in 2008 we have seen significant improvements in margins reaching levels comparable to top-tier telecom software companies,” they said.

The directors also highlighted that revenue last year was in line with 2007. “Revenues achieved in 2008 were at approximately the same level of 2007 and we have a strong order book at the start of 2009, which positions us well to achieve growth in 2009.

“In 2008, in the first half of the year we achieved lower business wins than we would have planned, but finished the year strongly by securing over £6 million of business in the second half of 2008.”

Earlier this month Aepona acquired digital payments company Valista in an all-share transaction to capitalise on the growing popularity of mobile phone apps.

“The acquisition creates a powerful, independent vendor . . . with a combined client list that includes some of the largest mobile and broadband operators in North America, Europe and Asia,” said spokesman Michael Crossey.