Business and IT consultant Charteris says its strategic realignment is bearing fruit despite a two-thirds annual profits fall.

The AIM-quoted company’s pre-tax profits dropped from £305,000 to £107,000 in the year to July, with profits before tax, goodwill and share-based payment charges down 30 per cent to £463,000, on turnover four per cent lower at £19.3 million. But chairman Cliff Preddy maintains this reflects the cost of Charteris's planned realignment into three specialised service lines, 'customer centricity', 'integrated enterprise' and 'infrastructure optimisation'.

Preddy contends that these new lines have been well received in the company's markets, with business building 'faster than we expected'. Turnover in the second quarter was 19 per cent up on the first at £9.8 million, which was marginally ahead of a year earlier.

With cash of £1.6 million and net current assets of £1.5 million, Charteris is 'actively recruiting' to meet increased demand and is optimistic about achieving its long-term goals. Floated at 90p seven years ago, the shares had fallen all the way to 13.75p by earlier this month and at 16.5p, up 1.75p this morning, might rally further if the realignment looks like paying off.

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