MTI Wireless Edge has confirmed that, due to higher than anticipated costs in respect of a military antenna project, profitability for the current financial year is likely to be lower than current expectations.
The Company said:
"This has resulted in the antenna division making an operating loss in the Third Quarter, although the Board expects that this military antenna project will be profitable once completed. The wireless irrigation division continued to perform strongly in the Third Quarter and delivered robust operating profit margins, which has led to the group trading profitably on a consolidated basis in the Third Quarter."
"The Board is optimistic regarding trading in the fourth quarter of 2017, however, given the antenna division's trading in the Third Quarter the Board now expects that group profitability for the current financial year likely will be slightly lower than current market expectations.
"The Board anticipates that MTI's group profitability for the year ending 31 December 2018 will remain in line with current market expectations for that year."
At 1:07pm: (LON:MWE) MTI Wireless Edge Ltd share price was -2.75p at 25.25p