i-nexus Global PLC on Tuesday said a prominent customer has decided not to renew its contract, although trading throughout its latest financial year was otherwise ‘steady’.

Shares in i-nexus were down 20% at 3.60 pence in London.

The Coventry, England-based software company said it was informed on Monday of the decision by the ‘major legacy’ client, which was generating £54,000 in monthly recurring revenue.

i-nexs said it ‘rapidly’ implemented measures to minimise the impact on cash flows and to maintain breakeven in adjusted earnings before interest, tax, depreciation and amortisation terms. It believes it ‘has sufficient working capital for its present requirements’, meaning for at least the next 12 months.

Chief Executive Simon Crowther said: ‘While it is always unfortunate to part ways with a valued customer, especially one with whom we have enjoyed a strong working relationship, this was our last remaining client using the older, highly customised version of the i-nexus software, and supporting their unique requirements was resource and cost intensive.’

Otherwise, i-nexus reported a ‘steady performance’ throughout the year ended September 30, with monthly recurring revenue increasing 16% to a year-end exit rate of £289,000 from £250,000 the prior year.

The company said it secured seven new logos during the period, secured an additional £36,000 in MRR - up from £10,000 the year before - and increased net retention to 107% from 95%.

At September 30 i-nexus had a cash balance of £267,000, although it cautioned that the end of the year ‘typically [represents] a cash low point’ since most of its recurring revenue is billed during the first half.

‘We are pleased to have secured a steady number of new logos whilst delivering on our land and expand strategy with record customer growth,’ Crowther said. He continued: ‘The focus for the year ahead continues to be expansion within our existing accounts, several of which have considerable growth potential, as well as the improved conversion of new customers.

‘While the loss of any customer is a financial setback, market demand for digital strategy solutions and growth opportunities within our customer base remains encouraging and the board are optimistic about the opportunities and growth potential of the coming year.’

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