24th Mar 2014 11:19
LONDON (Alliance News) - Shares in IBEX Global Solutions PLC dropped Monday after the group said its losses widened in the first-half of the year, despite significant revenue growth, and is now expecting earnings and revenues for the full-year to be below expectations due to investments.
The AIM-listed contact centre and business outsourcing provider said that in the first-half of the year it invested in infrastructure and workforce capacity to support additional growth from its existing client base in anticipation of servicing several specific client contracts, including three new new facilities in the US and the Philippines, coupled with expansion of a current facility in Metro Manila.
However it said that due to changes in timing related to certain programme launches, it now expects these contracts to generate revenue in the first-half of the next fiscal year, rather than this year as previously anticipated, which will hit its earnings expectations for the current financial year.
"The incremental costs borne by the company this year, together with the delay in revenues into next year, will result in group revenues and earnings being below the board's expectations for the year ended 30 June 2014," said Chief Executive Steve Kezirian in a statement.
Kezirian said that having mobilised its resources to service the forthcoming additional business, he is confident in the outlook for the business.
Shares in IBEX Global Solutions fell 13.2% Monday morning, trading at 175.00 pence per share.
For the six months ended December 31, 2013 the group reported a pretax loss of USD318,000, compared with a loss of USD172,00 the prior year.
Revenues in the first-half rose 35% to USD91.0 million up from USD67.3 million a year earlier, driven by increasing business from its established client base as well as recent contract wins with several new customers.
"On an operating basis, the business continues to have positive cash flows after on-going interest charges and capital expenditures and is paying a dividend of USD1.25 million to reflect its cash generation," said Chairman Zia Chishti in a statement.
The group said major customer wins during the period included a key contract with a global wireless technology and systems integrator, as well as programme launches in the US, Philippines and Pakistan.
Net debt at the end of the period increased by USD8 million to USD10.9 million, which IBEX said was primarily driven by capital leases associated with facilities in the US and the Philippines.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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