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AIM-listed Software development services firm Sumo (LON:SUMO) saw its shares drop by 4.48% to 173.85p (as of 14:50 BST) despite first-half revenues rising by 60.3%. Losses before tax narrowed by £0.2 million to £1.8 million, but gross margins fell by 200 basis points to 34.8%. Management said that the current pipeline was positive, with good revenues visibility for 2019 expected by the end of the calendar year.
Chief executive Carl Cavers commented that: “These results cover our first half year period as an AIM quoted company. The business is flourishing under this new, independent capital structure and I am delighted to report an excellent performance in H1, driven by continued strong organic growth in our core services. We are seeing exciting business development opportunities, as the video gaming market continues to grow globally. This, combined with our low risk business model, gives us a great deal of confidence in the ongoing success of the business.“