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DeepVerge PLC shares took a hit on Friday as the firm warned annual revenue was likely to come in below market expectations, despite signs of substantial growth.
Shares in Deepverge dropped 6.3% to 14.30 pence each in London on Friday morning.
Updating on the first half of the year, the Dublin-based environmental and life science group said revenue rose 95% year-on-year to £6.5 million from £3.3 million.
For the year as a whole, it expects revenue to be over £18 million, which is below current market expectations. In 2021, it reported revenue of £9.3 million.
The lower revenue will lead to a reduction in earnings before interest, tax, depreciation and amortisation, gross margin and a slight increase in overheads.
‘Although full year 2022 revenues might be lower than previously guided, sales and orders continue to rapidly expand across all divisions in the current macroeconomic and geopolitical environment. We have taken a prudent stance to guide the market on year-end revenue and will provide further updates as necessary,’ Chief Executive Officer Gerard Brandon said.
Orders due for delivery in the second half reached over £8.9 million, more than double from the previous year's figure of £3.9 million.
The firm noted its success in converting its prospect pipeline into firm orders for 2022, with £6.5 million of deals announced in the last couple of months. However, it warns of ‘uncertainty’ regarding whether the conversion rate in the coming months will meet previously expected levels.
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