I-Nexus reiterates guidance despite weak revenues

24th Oct 2019 10:06

(Sharecast News) - Cloud-based software solutions provider I-Nexus Global said on Thursday that it still expects underlying losses to be in line with previous expectations despite lower-than-anticipated revenues.
I-Nexus said it expects total recognised revenues for the year to come to £4.8m, down from the £4.7m recorded a year earlier.

However, it also said that thanks to careful management of its rate of investment in the second half, earnings before interest, tax, depreciation and amortisation and pre-tax profits are set to be in line with previous forecasts of around £4m and £4.2m, respectively.

Monthly recurring revenues rose slightly from £335,000 to £340,000.

The AIM-listed group also benefitted from a substantial increase in upsells to existing clients during the period, which helped offset slower-than-expected new deal conversion.

Chief executive Simon Crowther said: "A combination of factors have resulted in sales being weaker than originally anticipated, leading to a disappointing revenue result.

"While this is frustrating, we have taken swift remedial action and, as a result, delivered EBITDA in line with our prior expectations."

As of 1020 BST, I-Nexus shares had climbed 6.96% to 24.60p.