26th May 2016 07:21
LONDON (Alliance News) - Imagination Technologies Group PLC Thursday warned its adjusted loss before interest and tax and revenue for the year to end-April will be "materially below market expectations", and promoted Interim Chief Executive Andrew Heath to chief executive with immediate effect.
The chip designer said this was a result of one-off adjustments for system-on-chip design services contracts and bad debt write-offs on two specific customers, neither of which it can treat as exceptional items.
However, Imagination Technologies said these one-off contract adjustments and bad debts will have "no negative impact" on its current year, and contract renegotiations are expected to add to its revenues and profits in the year ahead.
Elsewhere, the restructuring of the business including the sale of its consumer audio division Pure is on course, and Imagination said Pure has attracted considerable interest from potential buyers.
This restructuring is expected to result in an exceptional charge of over GBP50.0 million to be expensed in the recently ended year.
Imagination Technologies expects to announce the initial results of its operational review along with its full year results July 5.
Shares in Imagination Technologies were down 1.0% at 169.31 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Imagination Technologies Group