Kofax warns on economy as profits rise

Software provider Kofax has seen revenues grow 12 per cent to $243.9m (£150m) in the year to the end of June as market share grew and companies relied on its maintenance services.

Pre-tax profit rose more than 43 per cent to $26m in the year, as gross margin rose to 79.5 per cent from 76.7 per cent in 2010, the company said.

But US-based Kofax said revenue growth had slowed in the second half of the year as the economic uncertainty prompted companies to wait longer to make decisions on new investment.

“We believe this slowdown was caused by longer sales cycles and decision making that emerged as a result of increasing uncertainty and volatility in the global economic environment.

“We expect these challenges to continue until more confidence and stability return to markets,” chief executive Reynolds Bish said in a statement.

Kofax is preparing to IPO in the US with a view to taking a dual listing with London.

It said it expects a further eight to ten per cent revenue growth in the current financial year as current challenges continue.