3rd Jul 2015 06:28
LONDON (Alliance News) - Location intelligence services company Ubisense Group PLC issued a warning on its revenue for the full year on Friday, after saying it has been hit by more contract delays in the first half and said it will restructure its operations to cut costs.
Ubisense said that in addition to an anticipated fall in lower-margin Services division revenue and the delays of two contracts into the second half of the year, it has now seen further delays on certain contracts, meaning revenue in its Solutions arm in the first half will be "some way short" of the first half of 2014.
Though it does expect the majority of the delayed contracts to close in the second half, Ubisense said it would be "prudent" to assume that the shortfall in revenue in the first half will not be recovered in full in the second half. It does, however, expect its gross margin to be higher in the second half, driven by Solutions contracts coming through.
Ubisense also said, however, that a review of its business and costs has led the company to conclude that a restructuring of its operations will be required to drive operational profitability. That restructuring will mean the company will book one-off charges this year, though it expects the savings to mitigate some of the revenue softness over the year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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