* Pre-tax loss of 3.8 million pounds
* Proposed dividend for 2008 down 33 pct
* Shares up 6.8 pct
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LONDON, Dec 3 (Reuters) - British software company Innovation Group Plc TIG.L posted a 27 percent increase in full year revenue, but said it had been a challenging year as it swung into a pre-tax loss on Wednesday.
The group, which provides outsourcing to the global insurance industry, said its pre-tax loss was 3.8 million pounds ($5.65 million) due to increased investment in new business process outsourcing products (BPO) and contract delays.
Innovation, which serves customers including The Ford Motor company and AXA Insurance, said its board would propose a full year final dividend of 0.20 pence per share, down 33 percent from the same time last year.
But the group sounded a positive note on its outlook.
“Our opportunity pipeline and recurring revenues remain strong. This gives the board the confidence in the significant long term growth prospects for our business,” said Hassan Sadiq, Innovation chief executive.
Shares in Innovation, which have underperformed the Software and Computer Services index .FTAS9530 by 79 percent over the past 12 months, were trading up 6.8 percent at 4.7 pence by 0815 GMT.
Reporting by Farah Master; Editing by Rosalba O'Brien