Following a review of forecasts, full-year Revenues are now expected to be 10% below previous expectations.
Companies: ATTRAQT Group PLC
Attraqt Group (LON: ATQT) has announced the disappointing news today that it expects Revenues for the full year to be 10% below previous expectations, following a review of forecasts.
The review came at the request of the Board following the appointment of the Group's new Finance Director, Eric Dodd, who found a number of inaccuracies in forecasting the timing of "certain contracts and 'client go-live' dates".
The statement said:
"The Company now expects revenues for the full year to be circa 10% below previous expectations but still showing year on year high single-digit organic growth and to be EBITDA positive in the second half of the year as well as being broadly breakeven for the year as a whole."
The downgrade in full-year Revenue forecasts will also carry forward to 2018.
The announcement sent shares tumbling on Friday morning as almost a quarter of the share price disappeared in early trading.
The software company whose online visual merchandising tool is used by an impressive client roster of brands including Tesco, TK Maxx and The North Face said its order book stands at £2m. It said it is working "on a plan" to resolve delayed 'go-live' dates.
The company, which was founded in 2003 by serial entrepreneur Dan Wagner listed on London's junior market in August 2014. Wagner quit as Chairman of Attraqt last year.
The Group trades on 12-month forecast rolling PE ratio of 24x against the industry median of 18x and has a Market Cap of c. £38m after today's price drop, which is at its lowest since July 2016.