Outsourcery shares slump on revenue worries

OUTSOURCERY saw the value of its shares slump 20% on Friday after warning that revenues would be lower than expected for the year.

The Manchester cloud computing company, whose joint chief executive is entrepreneur and Dragons’ Den investor Piers Linney, said there had been delays to a deal arranged with a strategic partner.

In a trading update it said: “This will have an impact in the short term on the growth of our Monthly Recurring Revenue (“MRR”) during the year and, consequently, an impact on our reported revenue result for this financial year.”

In response the company is cutting costs which should ensure it will hit its profit targets for the period.

It added: “The group has reviewed all aspects of its cost base and expect to produce additional annualised cost savings of circa £1m per year from next financial year.”