Arcontech (LON: ARC) shares have fallen on Tuesday after the company revealed its pre-tax profits decreased by 8% in the six months ending 31st of December 2020.
However, Arcontech attributed the reduction in its pre-tax profits to the investment in building the sales team, which is expected to enhance its future earnings.
The company's revenue increased during the period by 4.7% to £1.54 million, while its annual run rate of recurring revenues on 31st of December 2020 increased by 4% to 2.98 million.
“In these uncertain times Arcontech has continued to perform well, with sound revenue growth but a reduction in profit before tax due to the effect of the investment in building the sales team which is expected to enhance future earnings,” stated Geoff Wicks, Arcontech’s Chairman.
The company confirmed that no interim dividend is proposed to be paid in respect of the half-year, although they expect to continue their policy of paying a dividend following the announcement of its full-year results.
Shares of Arcontech are down 10.96% at 167p following the interim results.
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.