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Norkom reports strong EBITDA growth and continued increase in revenues

Norkom Technologies, the leading provider of financial crime and compliance software solutions to the global financial services industry, has today announced its annual results for the year ended 31 March 2010.

The company reports the following key financials:

  • Revenue up 3% to €49.3 million (2009: €48.0 million)
  • EBITDA up 12% to €9.2 million (2009: €8.2 million)
  • EBITDA excluding IFRS 2 up 20% to €10.2 million (2009: €8.4 million)*
  • Gross Profit margin increased from 61% in 2009 to 63% in 2010
  • Adjusted Diluted EPS up 22% to 9.42 cents (2009: 7.74 cents)
  • Net cash inflow generated from operations of €15.0 million (2009: €6.6 million), up 127%
  • Net cash of €41.6 million (March 2009: €27.5 million), up 51%

*IFRS 2 Share based benefits charge of €1.0 million (2009: €0.3m)

Full Year Results

€m     2010     2009     % change
Revenue     49.3     48.0     3%

EBITDA (excluding IFRS 2)

    10.2     8.4     20%
Adjusted Diluted EPS     9.42 cent     7.74 cent     22%
Cash Balance     41.6     27.5      

Key business highlights for the period include the following:

  • Norkom continues to execute and win new clients in its target regions with sixteen new clients added during the year to 31 March 2010
  • It also continues to expand its existing client relationships, which delivered 90% of total revenue during this period (2009: 82%) through follow-on re-investment in its solutions
  • The company’s most recent geographical expansion into the Middle East continues, where it has won five new clients during 2010 (2009: 1)
  • Its Asia Pacific region has grown from strength-to-strength, where revenue increased by 14% to €9.0 million (2009: €7.9 million)
  • Its PCS revenues grew by 39% to €7.0 million (2009, €5.0 million), and now represents 14% of total revenues
  • Norkom’s focus on fraud solutions continues to be rewarded and it now has 29 clients as part of its franchise in this area (2009:18)
  • Its associate, Digital Harbor, which is establishing itself as a serious contender in the healthcare fraud industry, moved to profitability during the second half of calendar 2009 and has operated profitably since.

Commenting on the full year results, Norkom’s Chief Executive Officer, Paul Kerley, said:

“2010 has been another solid year of performance. Even in the midst of significant upheaval in our core markets, the strength of our business model and market standing, together with the demand drivers in our market allowed Norkom to deliver a strong performance for the period. While continuing to deliver growth with profits, careful management of costs and focused investments gave us the opportunity to enter new geographies, release new products and create additional infrastructure, all of which position the Group well to take advantage of any upswing in demand in the coming periods. We have ended the period as a stronger company in terms of the quality of our market position, expansion of our product lines and the financial strength of our earnings and balance sheet. During this period, we do believe that we have navigated through the bottom of the crisis in our core market, while strengthening the quality and competitiveness of our solutions, services and people.”

About Norkom Technologies (www.norkom.com)

Established in 1998, Norkom Technologies (AIM: NORK.L, IEX: NORK.IE) enables financial organisations to take intelligent action, control defences, and evolve strategies against fraud, money laundering, and other types of financial crime. By combining a unique investigative technology platform with deep domain expertise, Norkom has established a solid track record of reducing financial losses, protecting users’ reputations, improving operational efficiencies, and lowering the cost of information technology.

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