Software firm’s shares drop as annual revenue falls below expectations
Shares in Coventry software firm i-nexus Global dropped by more than 30% yesterday after the company announced that it expects annual revenue to fall behind expectations.
The company, which is based at Coventry Business Park and also has an office in New York, said yesterday that while the group has secured a number of new sales in Q3 and the pipeline of opportunities is “large and growing”, these have not converted at the rate required to meet the board’s revenue expectations for the financial year as a whole.
The company said: “Due to careful planning around investment, the EBITDA for the year is expected to be in line with current expectations; however both total recognised revenue and closing cash balances will be below expectations.”
On the news, the company’s stock fell 31.3%, closing last night down 10.8 pence to 23.70 pence per share.
The company added: “Whilst the slower than anticipated rate of conversion is disappointing, the board remains confident that the strategy being pursued by the group is right to support the acceleration of growth anticipated in future periods.
“The increased size and experience of the sales team is driving a growing pipeline of opportunities and improving the proportion of upsell opportunities to existing customers. In addition, churn rates in Q3 have remained at the lower levels seen in Q2, as anticipated, as the investments in the group’s customer success team continue to bear fruit.”
The company will issue a pre-close statement for the year ended 30 September 2019 in the second half of October.
