Geong International on track for year

Chinese internet software solutions provider Geong International said it remains 'cautiously optimistic' of achieving full year market expectations and expects its second half performance to continue much the same as the first half.

The Jersey registered and Beijing headquartered firm said pre-tax profit rose to £0.71m for the six months ended 30 September 2011 from £0.67m the year before. Turnover rose to £4.8m from £4.7m the same half a year earlier.

Gross margin rose to 51% from 50% a year earlier. Geong said it has net cash of £7.3m, up from £4.1m previously. Its order book increased to £15.6m from £14.8m and includes £6m of recurring revenue.

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Geong, which has operations in Beijing, Shanghai, Guangzhou and Canada, said whilst it is mindful of the challenging financial environment, it expects the second half to continue the progress made in the year to date as it pursues its strategy of margin improvement and operating cash generation.

Geong said it is disappointed that it could not conclude the acquisition of AdBeyond but, "remains adequately funded to pursue its organic growth objectives and the Board believes that the Group remains in a much stronger position to pursue other acquisition opportunities in the future."

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cj