18th Aug 2014 07:44
LONDON (Alliance News) - Red24 PLC shares dropped in early trading Monday after the firm said its pretax profit in the current financial year will take a big hit from the decision by a key customer to review their product range in the UK.
The crisis assistance company saw its shares fall 16.1% to 13 pence early Monday, putting it amongst the top five fallers on the AIM All-Share index.
The firm said a major customer had informed it of plans to make changes to the products they offer in the UK. Red24 said the decision will impact on its current financial year with the loss of around GBP500,000 in revenue and a corresponding loss in the contribution to its pretax profit of approximately GBP250,000.
The firm said it was making moves to replace the revenue and would take other internal actions to mitigate the impact of the loss.
Red24 said all other areas of its business are trading in line with expectations.
By Sam Unsted; [email protected]; @SamUAtAlliance
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