21st Jan 2015 08:11
LONDON (Alliance News) - Publishing Technology PLC Wednesday reiterated that its 2014 revenue will be materially below market expectations and its loss worse than hoped due to an adjustment to the way it accrues revenue, as it also revealed that it's in talks with an overseas investor.
The company said it's in talks with an unnamed overseas party that's interested in buying a "considerable" minority stake in the company as long as it is satisfied with due diligence and gets regulatory approval. The deal would involve issuing the party with new shares at a "considerable premium" to Publishing Technology's current share price.
Its shares were down 5.1% at 168.40 pence early Wednesday.
Publishing Technology said it will delay the publication of its final results this year due to the talks.
The software and services company had previously warned its 2014 results would be "significantly below market expectations" last September as a result of higher investment and a realignment of revenue recognition following a review of the business under its newly appointed Chief Executive Michael Cairns.
The further reduction in expected profitability is due to the shift of an "advance" software project, which is now expected to deliver revenue and margin in 2015 and 2016, Publishing Technology said Wednesday.
Publishing Technology said that as a result of the realignment of revenue it can start 2015 without any historic revenue issues, which will allow it to recognise revenue in line with associated costs, and return to growth and profitability in 2015.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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