Electronic Data Processing shares down due to order delays

17th Dec 2014 15:05

Shares in IT provider Electronic Data Processing on Wednesday fell after reporting a decline in annual profits and revenue.Revenues decreased to £5.5m from last year's £5.83m due to delays to a number of customer orders during the first half of 2014.Profit before tax also declined to 0.4m from £0.79m in the year before, driving earnings per share down to 3.21 from 4.68.The company said second half sales improved despite a competitive environment. The challenges reduced cash and equivalents from £5.67m to £4.98m.Electronic Data revealed an offer from their property in Milton Keynes was now "looking unlikely to proceed", which made the company's current assets to move back into fixed assets.Price competition in the sector is expected to impact the group's revenues by £300,000 in the current financial year of 2014.However, chief executive Julian Wassell voiced confidence about next year.Wassell said: "We have a strong product and services offering, a robust business model and considerable financial strength which will enable us to meet the challenges we will face in the forthcoming year."Having strengthened our sales team, we expect to be well positioned to take advantage of those new business opportunities which do arise."Shares were down 10.67% to 67p at 13:26 on Wednesday.