11th Jan 2022 11:55
(Alliance News) - Shares in DeepVerge PLC fell on Tuesday morning amid news that significantly higher revenue was not enough to stop its annual loss from widening.
The environmental and life science group based in Dublin and York posted revenue of GBP9.3 million for 2021, more than double GBP4.5 million the previous year. The top-line performance was boosted by strong second-half revenue of GBP6 million compared to GBP3.4 million a year before.
However despite substantial revenue growth, DeepVerge said it now expects to generate a loss before tax of around GBP3.5 million, widened from GBP2.9 million in 2020. The loss exceeds market expectations and was primarily blamed on the delayed execution of 2021 orders.
Despite the disappointing bottom-line results, DeepVerge pointed to a promising second half, posting its first profitable half year for earnings before interest, tax, depreciation and amortisation, excluding exceptional items.
DeepVerge said its order books continue to grow across all divisions.
Shares fell 11% to 20.45 pence in London on Tuesday after the announcement.
Chief Executive Gerard Brandon commented: "DeepVerge has delivered another year of triple-digit percentage revenue growth, with higher margins and an increase in recurring revenues despite supply chain delays and reduced production staff due to Covid infection and isolation in the fourth quarter."
Looking ahead, Brandon added: "The group has the strongest balance sheet in its history and a solid foundation for continued strong growth through 2022."
By Will Paige; [email protected]
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