REG - Arcontech Group PLC - Trading Update

ArcontechAnnouncement

29/11/2021 07:00

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RNS Number : 7995T  Arcontech Group PLC  29 November 2021

ARCONTECH GROUP PLC

 

("Arcontech" or the "Company")

Trading Update

Arcontech (AIM: ARC), the provider of products and services for real-time
financial market data processing and trading, announces that its trading
performance has regrettably fallen below current market expectations due to
one customer reducing its market data spend with the Company, and notification
from another customer that it will not be renewing its contract from the start
of second half of 2022. The two changes are unrelated and do not involve
customers with Arcontech's core MVCS server-side solution. They instead
reflect one customer greatly scaling back its market data team and market data
requirements, and a second choosing not to renew its contract for one
Arcontech product because it is switching to use a solution included in a
legacy, bundled contract.

The Company is consequently revising its year end market guidance to reflect
this net reduction of revenue. The reductions will take effect at the
beginning of the second half of Arcontech's financial year and consequently
will negatively impact revenue by annualised c.£300K, half of which will
impact in the current financial year.

However, notwithstanding the above the Company senses an overall improvement
in the business outlook which until now has seen growth affected by Covid. Its
clients are now renewing interest in new business projects and the Company's
sales pipeline continues to be healthy. The increasing opportunities to travel
and cement new relationships also bode well for the future and our ability to
recover lost ground. During the last year Arcontech has improved its offerings
to provide more value and the quality of its solutions together with its
ability to help reduce spend, positions the Company well to absorb any lost
business and resume growth as the pipeline matures. Arcontech continues to be
fully confident in the strength of the business and is working to leverage its
cash reserves, when the opportunity arises.

 Enquiries:

 Arcontech Group plc                                 020 7256 2300
 Geoff Wicks, Chairman and Non-Executive Director
 Matthew Jeffs, Chief Executive

 finnCap Ltd (Nomad & Broker)
 Carl Holmes/Tim Harper                              020 7220 0500

 To access more information on the Group please visit: www.arcontech.com
 (http://www.arcontech.com/)

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to be in the
public domain.

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