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Arcontech trading to fall short of market expectations
29th Nov 2021 09:14
(Sharecast News) - Software company Arcontech Group warned on Monday that its trading performance had fallen below current market expectations.
Arcontech stated the softer-than-expected performance was due to one customer reducing its market data spend with the company and another stating that it would not be renewing its contract at the beginning of the second half of 2022.
The AIM-listed firm noted that the two changes were unrelated and did not involve customers with its core MVCS server-side solution.
However, the firm stated it had been forced to revise its year-end market guidance in order to reflect the net reduction in revenue, which will take effect at the beginning of the second half and negatively impact revenues by roughly £300,000, half of which will impact the current financial year.
Despite this, Arcontech said it "senses an overall improvement in the business outlook".
As of 1125 GMT, Arcontech shares were down 18.42% at 103.20p.
Arcontech stated the softer-than-expected performance was due to one customer reducing its market data spend with the company and another stating that it would not be renewing its contract at the beginning of the second half of 2022.
The AIM-listed firm noted that the two changes were unrelated and did not involve customers with its core MVCS server-side solution.
However, the firm stated it had been forced to revise its year-end market guidance in order to reflect the net reduction in revenue, which will take effect at the beginning of the second half and negatively impact revenues by roughly £300,000, half of which will impact the current financial year.
Despite this, Arcontech said it "senses an overall improvement in the business outlook".
As of 1125 GMT, Arcontech shares were down 18.42% at 103.20p.