12th Nov 2015 09:05
LONDON (Alliance News) - Location intelligence services company Ubisense Group PLC on Thursday said its revenue and profit for the year look at serious risk of falling short of previous guidance after the company was heavily bruised by the emissions-cheating scandal at German car giant Volkswagen AG.
Ubisense said its Geospatial division has continued to trade well, though a significant volume of the deal revenue is set to flow through in the final weeks of 2015.
But the company's real-time location services unit has been materially impacted by the scandal involving Volkswagen cheating emissions tests, which has resulted in downscaling, delays or cancellations to major orders and longer decision-making cycles.
As a result, Ubisense expects its revenue and profit for the full year will miss its previous guidance and will make an adjusted earnings before interest, taxation, depreciation and amortisation loss for the full year.
Cash conversion has also been hit by restructuring costs and extended payment terms on certain contracts, the company said.
"The second half of the period has been challenging for the business, driven by macro events outside of our control," said Chairman Peter Haverson.
"In the short-term, we have made some necessary decisions to right size the cost base of the business and are focused on refining our sales strategy, in particular our partner channel development, to drive revenue growth through expanded scale and reach," Haverson added.
Ubisense shares were down 21% on Thursday to 65.75 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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