9th Feb 2016 10:32
LONDON (Alliance News) - Artilium PLC said on Tuesday it was "disappointed" it had yet to see the impact from its investment in improving the fundamentals of its performance, along with recent acquisitions, after having previously predicted strong growth for the year to end June 30.
The AIM telecom software and services company had said in October it was aiming for strong growth in the current financial year in revenue and in its customer base, on the basis of its acquisitions, such as Talking Sense Networks, and investment in business development.
However, the company said that since then both its revenue and earnings before interest, depreciation and amortisation had been affected by delays in a number of high-margin projects for customers of Artilium as well as in the start dates of a number of contracts signed by its subsidiary United Telecom. It said these projects are still expected to complete, but their impact on results have been slower than expected.
As a result, Artilium said it now expects revenue of approximately EUR4.3 million and adjusted losses before interest, tax, depreciation and amortisation of EUR300,000 for the six months ended December 31.
Artilium's directors believe this will lead to revenue for the year end 30 June of between EUR10.0 million and EUR11.0 million, up from EUR7.7 million the year before, and adjusted earnings before interest, tax, depreciation and amortisation of EUR35,000, in line with the previous financial year.
"While the pace of growth is somewhat slower than expected, the company is making steady progress and is pleased to see that the order book is considerably stronger than this time last year. The directors remain confident of the long term prospects of the company and look forward to updating the market with respect to continued contract and revenue progress in due course," said Chief Executive Bart Weijermars.
Artilium, which will publish half-year results on March 21, was trading 7.0% down at 5.00 pence on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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