Companies: CCS   

Transaction software specialist Clarity Commerce Solutions has turned a £1.1 million interim-operating loss into £80,000 first-half profits.

The Basingstoke-based company, catering for the ticketing, retail, leisure and hospitality sectors, has been working its way back to profitability after last year’s shareholder revolt, led by ex-chairman Bob Morton, changed the previous regime. AIM-quoted Clarity, now chaired by John O’Hara and steered by chief executive officer Ken Smith, increased turnover 23 per cent to £8.3 million in the six months to September and slashed its pre-tax loss from £1.3 million to £39,000.

During the first half-year, the retail side, notably the company’s MATRA acquisition, put in the strongest performance, aided by the compatibility of its software, and won a significant contact with Universal Studios in the USA, among others. Ticketing and leisure made progress, but hospitality made a small loss, which Clarity hopes to turn around this year, following a £200,000 contract win with Peel Hotels.

The company, which claims ‘significant progress’ in reducing costs, has renewed its bank facilities for a further 12 months on improved terms and cut net debt by £600,000 to £1.2 million. That is before a £4.1 million deferred payment in shares and cash for an earn-out agreement with the vendors of MATRA, whose co-founder Anthony Houldsworth joined Clarity’s board last month.

Clarity, formerly a ragbag of acquired businesses with little central control, has become a more efficient operation. O’Hara and Smith expect a good second half-year, with ‘strongh acceleration’ in the USA, and some analysts see pre-tax profits of £1million for the full year to next March.

The stock market remains unconvinced, with Clarity shares down from 77.5p three years ago to only 13.5p. That looks a decidedly grudging rating.

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Clarity Commerce Solutions	AIM	£6.09m	19.00p	1.00p
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Revolt pays off at Clarity Commerce			09/12/2008
Operational turnaround at Clarity			21/11/2008
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