Software firm's share price fell 42% in early trading
Companies: Intercede Group plc
Identity software specialist Intercede Group (LSE: IGP) issued a profit warning this morning, saying orders of its flagship product MyID had been slower than expected in the first half of the financial year.
IGP's share price opened down 42% in early trading before regaining slightly, knocking a third off the company's market cap (c.£15m).
The company confirmed it still had a strong pipeline of MyID licence opportunities and is continuing to pursue its short to medium term strategic objectives, but admitted it was unlikely to match last year's record £11m FY revenues:
"The Company announces that it has had a slow start to the current financial year and is continuing to experience delays in the receipt of anticipated MyID license orders from both new and existing customers. Consequently, trading for the year to date is below expectations and the prior year."
finnCap published a note this morning on the results, lowering its forecasts and valuation accordingly:
"Intercede’s trading update reports a slow start to the current financial year (ending March 2017), with delays continuing in the receipt of anticipated licence orders from both new and existing customers. Revenue is now expected to be lower than last year's record sales of £11.0m, and we review forecasts accordingly... share price recovery dependent on proof of execution in both the established MyID and prospective MyTAM and RapID product sets."
MyID is an identity and credential management system that assigns trusted digital identities to employees citizens and machines. The company has been working with the US & UK governments, as well as some of the world's largest corporations, telecommunications providers and information technology firms, for over 20 years.