Reinvestment sees nCipher slip into 1H08 loss ahead of takeover by Thales
nCipher plc (NCH.L), provider of IT security solutions and subject to an agreed takeover offer from Thales, said revenue increased by 2% to £12.3m for 1H2008, while it slipped into a pretax loss of £1.6m compared to a profit of £2.0m in 1H2007.
The group said its order intake grew 24% to £14.4m, but that its operating loss of £1.7m was the result of its strategy of increased investment in the business.
CEO Geoffrey Finlay said the results showed progress on nCipher's 3 year plan which entails "making significant additional investment this year to improve all aspects of our business and consequently trading to June 2008 shows a loss reflecting the investment needed to ensure a strong foundation for scalable future growth of both sales and profits.
A month ago the Board of nCipher agreed to recommend a £51m takeover offer from Thales UK Ltd.
