Irish tech services player Horizon Technology Group confirmed today that turnover and operating profits for 2005 are in line with market expectations.
However, it did signal two potential blots on the horizon in terms of having to pay for two exceptional items “of a one-off nature” with a total value of €2m, which will be charged to its consolidated income statement for the year.
Horizon said the group’s distribution division expects to reach agreement with a supplier to refund approximately €1.2m that was incorrectly paid by the supplier in 2003 and 2004. This refund relates to amounts that were passed on to the division’s customers in the form of price discounts.
It added that following the loss of a tenant in one of the group’s leasehold properties, the group has sub-let the space to a replacement tenant. “While rent deposits held by the group were sufficient to ensure that no bad debt was incurred, the vacancy period before a new tenant was found combined with rent-free incentives and transaction costs amounted to €800,000,” Horizon said in a statement.
Horizon’s chief executive officer Gary Coburn commented: “Horizon has had seven consecutive periods of earnings growth and continues to meet market expectation. The group is a strongly profitable, cash generative group with sustainable competitive advantages and significant operational leverage opportunities.”
The company’s full year results for 2005 will be issued on 9 March.
By John Kennedy