EU Supply said it expected to generate a maiden pre-tax profit for the full year even as revenue is expected fall slightly short of market expectations.
For the year ended 31 December 2018, the company expected to report a maiden profit before tax of £0.4m. Annual revenue was expected to grow by approximately 10% to approximately £5.1m, slightly below market expectations.
Significant development resources were allocated in second 2018 to build new services for buyers and suppliers, which would underpin the company's recurring revenue growth in the medium-term, EU Supply said.
The development of the company's micro procurement solution to existing and new customers was proceeding to plan and expected to further increase recurring revenue growth.
'I am pleased to report the Group's first profitable year before tax. This was achieved in a period of increased development activity during which revenue, all of which was organic, continued to grow, and for the first time exceeded £5 million,' said Thomas Beergrehn, CEO of EU Supply.
At 8:48am: (LON:EUSP) Eu Supply Plc share price was -0.25p at 10.5p