Escher licence revenues to be materially lower than forecast
Source - SMW
Escher Group has warned that it expects full year licence revenues to be materially lower than forecasts.
The group said it would not close additional licence sales that it had expected in H2 due to the postponement of major contracts.
It said that as a result, group revenues were now expected to be approximately US$18m for the year to 31 Dec with licence revenues, which have a high margin, materially lower than forecasts.
It said adjusted EBITDA, excluding exceptional items, was expected to be approximately US$2.7m for the year.
Chief executive Liam Church said: 'We are disappointed with the postponement of licence sales, which we had anticipated falling in 2017.
'The volatility in revenues and earnings caused by the timing of these licence sales remains a characteristic of our core Postal activity.'
At 9:57am: (LON:ESCH) Escher Group share price was -47.5p at 127.5p