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1 February 2012 | Angeline Albert
The profits of procurement software company Hubwoo have risen by 3 per cent on the previous three months, according to the company’s fourth quarter results.
The company’s revenue for the fourth quarter was €9.5 million (£7.9 million), but it suffered an 8 per cent fall in total revenue in comparison with the same quarter in 2010.
Hubwoo, which provides cloud procurement solutions for SAP software, said software as a service contributed to €6.9million (£5.7 million) which represented 72 per cent of the total revenue for the fourth quarter. Significant new contracts during those three months included AkzoNobel, Caterpillar, Henkel and Rolls-Royce.
In 2011, revenue declined by 3 per cent compared with 2010, which the company said was the result of value losses on customer contracts which were renegotiated in 2010 and the first half 2011. The company also said the overall revenue fall was the result of it restructuring its sales team in Europe.
Hubwoo CEO Greg Mark said: “We are pleased to see the return to growth quarter-over-quarter, despite delays in contract signatures. We see significant improvement in pipeline and sales activity in both Europe and the Americas. The end quarter four estimates on profitability indicators confirm again that we are operating on a sound and scalable cost structure.”