Rachael Singh, Accountancy Age, Thursday 26 August 2010 at 10:08:00

Financial software business Mamut has seen profits increase following twoquarters of decline

Financial software company Mamut has seen its profits increase 27%, itslatest results show.

The business saw its profit before tax increase 27% in the second quarter of2010 to millions Norweign Krone (MNOK) 8.4 (858,488), from MNOK 6.6 in the sameperiod last year. The latest result is also an increase on the previous quarterwhich saw the business bring in MNOK 7.2 in the first quarter of this year.

Earnings before interest and tax for the business in Q2 2010 were MNOK 1.2for Western Europe, including the UK, Netherlands, Germany and Spain.

However, operating revenues fell to MNOK 118 in the second quarter of 2010compared with MNOK 121.7 for the same period last year.

A statement from the company said it had reduced its cost base, headcount andinvestment level to improve its "financial scalability".

The next major product launch from the business will be Mamut One which isdue to have online functions built in. The business hopes to release thesoftware later this year.

Mamut saw its customer base increase dramatically when it won a contract fromMicrosoft. Mamut inherited more than 9,000 customers when Microsoft announced atthe end of 2009 it would cease distribution of its Office Accounting software.Microsoft signed a deal with Mamut for the financial software business toprovide five years support to its former customers.

Further reading:

Mamutresults show fall in earnings

Microsoftdrops small biz accounting software

Mamutresults lower than expected