EDP still seeing customer caution

The Sheffield company supplies software to wholesalers and merchants, and said it expects uncertain conditions to continue for the rest of the year.

"Whilst we have continued to see a modest improvement in sales activity and order levels compared with the same period last year, customers and prospects remain cautious due to continued uncertainty in the economy generally," said the group.

Its software is used by companies including independent builders and timber merchants, and helps them manage their supply chains and monitor sales.

"The economic climate remains uncertain and we expect current market conditions to continue for the remainder of the financial year," said EDP.

"With our strong recurring revenues, prudently managed cost base and the continued enhancement of our software products we are well positioned for the future."

The group said recurring revenues represent 81 per cent of turnover so far this year, fully covering its day-to-day cash operating costs.

EDP added it has a strong, debt-free balance sheet. At the end of March it had cash balances of 2.5m.

EDP is consulting shareholders on the sale of Beauchief Hall, its freehold property in Sheffield, for 2.3m in cash.