Cost-cutting customers see Atlantic Global record a loss

SOFTWARE group Atlantic Global posted an annual loss as it struggled in a "challenging" trading environment, with customers slashing ITspending as they cut costs. But the Cleckheaton-based group, which designs and sells business and resource management software applications, said it recovered in the second half and has a strong pipeline of new business.

Revenues fell 38 per cent to 1.35m in 2009 as customers cut back on staff and slashed IT spending. It reported a loss of 130,000 compared to last year's 401,000 profit.

"A lot of our larger customers were shedding staff last year and you do not buy resource management software when you're shedding staff," said managing director Eugene Blaine.

However, the group also invested its largest ever sum in research and development – 403,000 – to improve its offering.

The group said trading this year is in line with expectations and it has already secured 63 per cent of this year's recurring revenues. "We have had a fairly decent start (to the year)," said chairman Adrian Bradshaw. "We're cautiously optimistic."