Despite Revenue growth of 24% in FY17 profits will be below expectations due to a number of factors.
Companies: Be Heard Group
Unfortunate news for Be Heard (LON: BHRD) shareholders this morning as they woke to find their investments had taken a blow off the back of Management's profit warning today.
Despite Revenue growth of 24% in FY17 vs. FY16, the digital marketing services group said profitability for the year is expected to be lower than expectations due to the deferral of contracts, as well as some cost overruns at the Group's MMT, agenda21 and Freemanvens businesses.
The profit warning sent shares crashing - down 22% to 2.2p at the time of writing.
This is despite the news it had won 46 new clients including Mastercard, Dreams and Pret in 2017, and that the deferral of contracts will likely be good news for 2018 numbers.
It also announced a reshuffle of senior management, including Executive Chairman Peter Scott becoming CEO, while previous Non-Executive Director David Morrison will become Non-Executive Chairman.
David Morrison, Chairman of Be Heard, said:
"Whilst we expect profitability in 2017 to be below expectations, Be Heard's new business momentum is proof of the demand for fast-moving, agile digital specialists operating seamlessly to deliver a better service to clients in today's increasingly complex marketplace. We see this trend gathering pace and remain confident of further progress in 2018."
Today's share price slump means the stock trades at an all-time low and continues its downward spiral since shortly after its December 2015 IPO.
