Kewill profits buoyed by cost cuts

Software firm Kewill posted an 80 per cent increase in full-year pre-tax profit, helped by cost controls and revenue growth in Europe, but said it expected tough economic conditions to continue in the short term.

Kewill, which received an approach pitched at 130p per share in May, said talks were continuing. However, chief financial officer Karen Bach declined to comment further on the progress of the deal. The company, which acquired customs compliance firm Minihouse1 last week, said it would continue to actively pursue acquisitions in fiscal 2011.

“We have had multiple discussions to date,” Bach told Reuters. The firm would use its net cash to fund acquisitions, Bach added.

As of 31 March, Kewill’s net cash stood at £17m, of which £5m was used to fund the acquisition of Minihouse1. Kewill said it would focus on acquiring companies with a software-as-a-service business model.