10th Dec 2015 15:55
LONDON (Alliance News) - ServicePower Technologies PLC on Thursday said it now expects revenue of about GBP13.0 million, excluding any further contract wins, in 2015.
The company, which provided mobile workforce management software, had previously guided to a better second-half trading performance. However, ServicePower's revenue amounted to GBP6.9 million in the first half, so Thursday's guidance suggests a decline in revenue in the second half to GBP6.1 million. The company recorded GBP12.7 million in revenue in all of 2014.
ServicePower also said revenue is "to comprise a higher proportion of lower margin sales" than expected, assuming no additional license sales are recognised prior to the end of the year.
ServicePower said it has incurred expenses of about GBP300,000 more than originally expected, due to IT expenditure and cloud transition costs.
"The company is still negotiating a number of license sales which may improve revenue and gross margin; however there is no guarantee that these contracts will be signed before the company's financial year end," ServicePower added.
Meanwhile, the company said it will repay in full its unsecured short-term loan facility from Herald Investment Trust on Tuesday next week.
The purpose of the GBP750,000 loan facility was to fund the company's working capital requirements and to continue investment in research and development.
ServicePower said its net cash is expected to be about GBP1.4 million at the end of 2015.
Shares in ServicePower were down 10.2% at 3.26 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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