18th Dec 2019 11:03
(Alliance News) - Touchstar PLC on Wednesday said its projected performance for 2019 is below company expectations as a result of political uncertainty and issues with obtaining stock.
Shares in the mobile data software firm were down 6.3% at 33.25 pence per share in London.
Touchstar forecasts revenue of approximately GBP7 million, marginally up from GBP6.9 million in 2018. The company said this is below its expectations, but does represent 10% growth from continuing businesses, when excluding its recently disposed On-Board division.
The company stated that "negative factors" for performance included customers not placing orders due to political uncertainty in the UK ahead of this month's general election. As well, order deliveries were affected by extended lead times for obtaining stock.
Touchstar said that as a result both pretax and after-tax profit will be below prior expectations. For 2018, Touchstar reported a pretax loss of GBP3.1 million. In the first half of 2019, the company's pretax loss was GBP527,000.
More positively, Touchstar said newly developed products are showing strong annual revenue growth, with Podstar Haulage revenue growth expected to be around 86%, Podstar Fuel around 13%, and Access Control around 10%.
The company has stated that the disposal earlier this month of the On-Board division, resulting cost savings, a strong order book and positive reactions to their new products" bode well for next year.
By Ife Taiwo; [email protected]
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