LONDON (Alliance News) - Shares in Coms PLC plunged 60% Wednesday morning after it said it will report a "substantial loss" for the financial year that just ended, and it is looking to strengthen its executive management team as soon as possible.
The cloud-based telephony services provider said it expects to report a substantial loss for the financial year ended 31 January 2015 of at least several million pounds, citing lower gross margins in the second half of the year than in the first half, and after it failed to achieved the level of cost savings from its recent restructuring process than it had hoped for.
Revenue increased further in the second half of the year, and as a result it expects to report full year revenue in line with market expectations, it said.
"The restructuring process referred to in the interim results continued during the second half of the year but the anticipated re-alignment of costs has not been achieved," the company said.
"In light of this very disappointing financial performance, the board is reviewing the company's strategy with the aim of ensuring that improved returns will be delivered across the businesses and to shareholders," it added.
Coms said that it needs to strengthen its executive management team as soon as possible and it currently in discussions with potential candidates. It also said that Non-Executive Director Diana Dyer Bartlett has taken on the responsibilities of the finance function, pending the appointment of a finance director.
Coms shares were down 57% at 1.00 pence Wednesday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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