22nd Jan 2016 08:31
LONDON (Alliance News) - Fusionex International PLC sought early Friday to alleviate concerns about the company's ability to collect cash from its sales, following a decline in its share price.
The data analytics company saw its shares plummet on Thursday despite releasing results for the financial year ended in September which showed a welcomed rise in pretax profit to MYR28.4 million from MYR19.5 million a year earlier, as revenue experienced a material increase.
However, Fusionex shares dropped 34% from 330.0 pence at the close on Wednesday, the day prior to the publication of its results, to close at 212.50p on Thursday.
Fusionex shares were trading up 0.7% to 214.0 pence per share on Friday morning, still far below their price earlier in the week.
On Friday, Fusionex tried to address the problem. It said it understands the share price "may have been affected by commentary regarding perceived poor cash collection in the period" and consequently tried to clarify its position.
"Cash collection for the year was adversely affected by an increase in trade receivables as a result of the business moving increasingly to channel partners which enable Fusionex to support scalable growth and wider market reach. These channel partners however require extended terms of trade, which is not unusual in the software industry and has resulted in this increase in receivables," the company said.
"Since the year end, and in the ordinary course of business, MYR23.4 million (GBP3.8 million) of the year-end receivables of MYR28.5 million (GBP4.6 million) has been collected," Fusionex added.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
FXI.L