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Touchstar PLC on Tuesday said it expects revenue to be below market expectations with profit hurt by exceptional charges and customer hesitancy. Shares in the mobile data computing solutions and managed services supplier plummeted 20% to 59.75 pence on Tuesday afternoon in London. Touchstar said it expects full-year revenue to now be around £6.7 million. This would represent a 2.8% decrease from the £6.9 million reported in financial 2024. The company said the economic ‘softness’ it had noted in its interim results had continued into the second half, resulting in customer hesitancy. The company said it expects ‘only a small’ pretax profit for the year, having reported a profit of £366,000 last year. Reorganisation costs of approximately £200,000 are expected, which relate to the restructuring of Touchstar’s senior management team. It added that a change in its accounting treatment of software development costs means the company will also be hit with a £1.3 million charge. Despite lower earnings, Touchstar said its balance sheet is ‘healthy’ with year-end cash anticipated to remain at over £2 million. ‘The short term will be difficult as we are now budgeting for the faltering economy to persist throughout 2026. Thus, we are resetting and reducing expectations for next year. We now expect only modest revenue growth in 2026 overall,’ said Chief Executive Lynden Jones. ‘Over the next twelve months, driven by our new focus, energy and strategy we anticipate some acceleration of the rate of growth in revenue which we expect to manifest itself into a step change in 2027 with further acceleration into 2028.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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