Portrait Software plc Preliminary Results for the year ended 31 March 2009

Henley-on-Thames, 29 June 2009 - Portrait Software plc (London: PST), a leading provider of Customer Interaction software, announces today its preliminary results for the year ended 31 March 2009.

Operating Highlights

• Move to application-based sales proving successful; licence sales increased 75% in second half with 20 licence wins in H2 for our growing range of inbound and outbound customer marketing applications.
• Extension of successful OEM partnership with Fiserv Bank Solutions, one of the world’s leading financial technology providers, to include resale of Portrait’s customer marketing applications - a growing and significant pipeline developing for the coming year.
• Recurring revenues now represent over 70% of all revenues, providing a good platform for future growth.
• Current financial year has started very well with 12 licence deals confirmed in the first quarter including Dell, an important new US reference for our Uplift marketing application.

Financial Highlights

• Revenue of £14.4 million (2008: £14.1 million). An additional £1.5 million of committed licence revenue was contracted in H2 which will be recognised in succeeding years.
• Trading in second half year returned to profitability before exceptional charges.
• First half operating loss and non-recurring exceptional charges contributed to full year loss after taxation of £3.2 million (2008: profit £0.3 million) and a fully diluted loss per share of 2.71 pence (2008: earnings per share 0.30 pence).
• Gross cash of £3.4 million (2008: £4.2 million).

Luke McKeever, Chief Executive of Portrait Software, commented: “Since my arrival seven months ago, the Company has worked hard on its sales and marketing execution and I am delighted to report that this focus is now generating positive results, with the increase in licence sales over this period being a great indication of Portrait’s growth potential.

“Perhaps of equal importance has been our ability to increase sales back into our customer base, with 19 out of 34 licences sold to existing customers, a compelling demonstration of the quality of our people and our software applications. This combined with our high level of recurring revenues provides a strong financial underpin for the coming year.”

“Operational improvements combined with our alignment to current market demands has resulted in an increase in customer revenue opportunities.  Demand for our applications is strong and we have several significant deals in the pipeline. We are looking forward to a year of profitable growth at Portrait.”

For further enquiries: