30th Apr 2015 08:36
LONDON (Alliance News) - Ubisense Group PLC said Thursday that it is talks with its broker Numis Securities over a potential equity fund-raising to strengthen its balance sheet, as it may not be able to recover an expected shortfall in revenue caused by contract delays in its second half.
The software company said that two contract delays mean that contract additions in its second quarter will fall below its expectations, and as a result it expects revenue for its Solutions business for first half of 2015 to be only in line with the previous year. Revenue from its Services business remain in line with its expectations, it said.
These contracts are likely to be installed in the second half of the year, but the company said it "considers it prudent" to plan on the basis that not all of this shortfall will be recovered in the second half. As a result it said it will defer planned recruitment and implement tight cost control to mitigate any hit to profit for the full year.
It is appointing Non-Executive Director Peter Harverson as vice chairman with immediate effect.
Ubisense said it has reviewed its outlook following its first quarter. It is continuing to put emphasis on its Solutions business, which it believes will be the right way to "maximise its market opportunity", although it will reduce revenue visibility in the short and medium term.
Shares in Ubisense are trading down 20% at 115.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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