EDP confident despite cautious clients

The Sheffield company develops, sells and licences software to merchants and distributors.

“We expect our customers to remain cautious whilst significant uncertainty remains in the economy generally,” said the comp-any.

“However, with our strong recurring revenues, carefully managed cost base and strong product offering, we are well positioned for the future.”

EDP said ongoing economic uncertainty means many of its customers remain cautious about IT spending decisions. But it has been able to maintain activity levels by “refining our pricing model” – charging lower upfront licence fees and increased ongoing fees.

“Our contracted recurring revenues remain strong and, consistent with the first half, represent approximately 80 per cent of turnover,” said EDP.

The company is debt-free and has £4.6m cash after selling its former Beauchief Hall headquarters in Sheffield in October 2010.