27th Nov 2018 16:58
LONDON (Alliance News) - Cellcast PLC said Tuesday it has seen a "material decline" in revenue in the past four weeks.
Shares in Cellcast closed down 11% Tuesday at 1.07 pence each.
The broadcaster said it has seen a "corresponding drop" in earnings before interest, tax, depreciation and amortisation and "associated profitability".
Cellcast believes this trend will continue in the short term.
Cellcast said it is working to collect monies due from client sin Kenya and expects to receive some of it before the end of the year but expects the bulk to arrive in 2019.
The company believes it has "sufficient" cash reserves to sustain its trading "at the present time". At October 31, Cellcast had about GBP700,000 in cash.
Cellcast said: "The board is taking steps to remedy the situation and actively seeking new revenue streams and further potential cost reductions."
In September the company said it was planning a "prudent" approach until the "major challenges" to the media and entertainment industry caused by Brexit are clarified post-March 2019.
At the time, Chief Executive Craig Gardiner said: "With Brexit uncertainty looming, we are focussing our efforts in our core market of the UK. In particular, we have invested in our online offering, with an emphasis on cost control and improving our margins. We therefore hope that the positive trading will carry on through the second half of the year."