Sopheon says annual revenues will exceed market expectations

Software company Sopheon expects annual revenues and profits to exceed market forecasts, the group said in a trading update Wednesday.

Revenues for the year to December 31st, are estimated to hit above the £12m mark, up from £10.3m the previous year.

Earnings before interest, taxes, depreciation, and amortization are pegged at over £1.6m.

"We are pleased to deliver solid growth in an economic climate that remains tough," Chairman Barry Mence said.

"This achievement is particularly satisfying, validating the board's decision to continue growth in staffing through 2011 and 2012. As we head into 2013, we are approaching our plans with the same mindset and ambition, tempered by a clear understanding of the need to maintain a strong financial footing."

Sopheon said it made significant progress during the year with a number of developments. Last week the group unveiled a major new product release and is working on an expansion strategy after securing an additional £1.1m of convertible debt finance.

A German business partner was also acquired in an effort to strengthen the group's position in the European market.

"Germany is an increasingly significant market for Sopheon, representing a quarter of our European revenues in 2012," Sopheon said.

Shares were up 7.41% to 7.25p at 8:35 Wednesday.

RD