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LONDON (Alliance News) - CAP-XX Ltd on Thursday said its earnings for the year to the end of June are expected to be in line with market forecasts, while revenue will decline on reduced orders.
The energy management systems manufacturer said it expects to report earnings before interest and taxes and earnings before interest, taxes, depreciation, and amortization for the year to the end of June in line with market expectations.
CAP-XX said revenue for the year was hurt by the shortfall in new orders from health trackers maker Spire, which has been impacted by trade tariffs into the US. As a consequence, revenue for the year will be below current market expectations, the company said.
More positively, CAP-XX said it continues to receive record interest in its expanded range of supercapacitors and remains in active discussions with a small group of potential licensees.
CAP-XX believes that further progress will be made on licencing during this calendar year.
Legal expenses associated with licencing activities and the defence of the company's intellectual property have been greater than expected, it said, although this has been offset by a combination of the continuing improvement in gross margin from sales of CAP-XX's own manufactured supercapacitors and the continuing strong growth in sales by its licensee Murata.
"The rising level of sales enquiries, when considered together with our previously announced product development initiatives, gives the board increasing confidence for the outlook for the next financial year and beyond," the company said in its statement Thursday.
CAP-XX shares were trading 4.8% lower on Thursday at 4.00 pence each.
