Publishing Technology's annual results were line with expectations following the successful development of new products, the company said in a trading update Monday.
The AIM-listed information technology company said during the year ended December 31st, 2012, it had strengthened the position of its products including its Advance suite software for the publishing market, the Ingentaconnect scholarly portal, the Pub2web digital content hosting platform and the Publishers Communication Group (PCG) sales and marketing consultancy.
Research and development of Advance and Pub2web products are almost finished and are due for completion this year. The company said it started making significant sales from the products.
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Development costs of £3.0m per annum were written off, leaving no capitalised expenditure to affect future profits.
The joint venture in China failed to produce profits during the period, but the firm said its agreement with the largest import and export organisation, CNPIEC, has been "ground breaking".
George Lossius, Chief Executive Officer at Publishing Technology, said: "Sales of our new generation products continue to grow apace, with a steady stream of new business implementations adding to our incremental recurring revenue base.
"After many years of investment, the increasing confidence of the market in our products underlines our confidence that we have the right strategy. At the same time, the decline in our mature products and services has been slower than we had anticipated which has allowed our profits to hold up during these years of investment."
The company's outlook for 2013 is growth in revenues from new products and services, a small decline in mature product revenue and further strides toward profitability in China.
Shares fell 4.86% at 176.00p at 8:30 Monday.
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