20th Sep 2019 11:54
(Alliance News) - Shares dropped in ULS Technology PLC on Friday as it said it was unsuccessful in re-tendering an existing contract, leading to expectations of a financial impact.
Shares in ULS, which provides online business-to-business platforms for UK conveyancing and intermediary markets, were 12% lower at 47.00 pence on Friday.
ULS did not disclose any details on the contract, but said it expects a "relatively minor impact" on its financial performance for the year ending March 31, 2020. For its 2021 financial year, the company expects the contract to hit its pretax profit in a range between GBP400,00 to GBP500,000.
For the year ended March 31, 2019, ULS Technology reported a pretax profit of GBP4.1 million.
Aside from the contract loss, ULS said its trading performance has remained robust in spite of market headwinds, with the United Legal Services and CAL divisions adding new customers.
"Whilst we are never pleased to lose a customer, especially one with whom we have enjoyed a strong working relationship, up to this point we have been pleased with our win-rate this year and we have every confidence our customer strategy is working. We continue to win new contracts, such as the recently announced contract with Principality Building Society, and release new products to meet market demand," said Chief Executive Steve Goodall.
Related Shares:
ULS.L