Geong disappoints with profits well below expectations

GEONG International, an AIM-listed China-based provider of online business solutions, disappointed investors after declining earnings during a challenging year pushed profit significantly lower.

GEONG International, an AIM-listed China-based provider of online business solutions, disappointed investors after declining earnings during a challenging year pushed profit significantly lower.

Turnover fell from £11.3m to £9.7m year-on-year (y/y), reducing the gross margin from 53% to 47% and pre-tax profits to £0.4m (2011: £2.6m), largely due to disappointing Software as a Service (SaaS) revenues and margins. Diluted earnings per share came in at 0.4p (2011: 5.5p).

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