UK's Arcontech revenue drops 11.5% on customer loss
UK's Arcontech revenue drops 11.5% on customer loss
Overview
UK market-data software firm's revenue fell 11.5% in fiscal year, mainly on customer loss
Profit before tax declined year-on-year but was marginally ahead of company-compiled market expectations
Company maintained final dividend at 4.00p per share
Outlook
Company expects a return to growth in the next financial year
Arcontech sees strong pipeline of prospective customers but notes long and complex sales cycles
Company says recent product enhancements expected to support longer-term growth
Result Drivers
CUSTOMER LOSS - Revenue decline was mainly due to loss of a large long-standing customer and delays in purchasing decisions by prospective customers
NEW CUSTOMER ADDED - Addition of a major European customer expected to restore recurring revenue run rate
PRODUCT ENHANCEMENTS - Company expanded product functionality and support team to appeal to wider customer base
Company press release: ID:nRSN5655Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Dividend |
| GBP 0.04 |
|
Analyst Coverage
Wall Street's median 12-month price target for Arcontech Group PLC is GBp180.00, about 122.2% above its September 11 closing price of GBp81.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)