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(Alliance News) - Aferian PLC on Monday said Chief Executive Officer Donald McGarva will step down, while also providing downbeat expectations on its annual results.
Shares in Aferian were down 32% to 8.50 pence each in London on Monday morning.
The Cambridge, England-based business-to-business company said McGarva will leave the company in October after 14 years, saying a review of the composition of the board is "underway" and the company will make a further announcement "once this has been completed".
Aferian also reported it expects to report revenue for the year ended November 30 at the lower end of guidance provided in December of between USD47 million to USD49 million. Revenue in financial 2023 was USD91.1 million.
"Management actions taken during 2023 to reduce the group's annualised cost base by approximately USD12 million have been successfully implemented but the further deterioration in trading at Amino now requires further restructuring action to be taken," the company said.
"The group will, therefore, immediately implement further annualised cost reductions of around USD3 million in the Amino business."
As a result of deterioration of Amino's current and forecasted trading, it no longer expects group adjusted earnings before interest, tax, depreciation and amortisation in financial 2024 to be higher than a year earlier.
Chair Mark Wells said: "In the face of unprecedented challenges, this last year has thoroughly tested the resilience of the group. However, our 24i video streaming business has made good progress this quarter and I am confident that the timely management actions taken in the last twelve months have positioned the group on the strongest possible foundation for the future."
Aferian expects to release its annual results next month.
By Greg Rosenvinge, Alliance News senior reporter
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