LONDON (Alliance News) - E-procurement software provider EU Supply PLC on Thursday said it expects to report its revenue for 2015 ticked higher but said sales for its Business Alerts division had fallen below expectations in the second half.
The company said it expects its 2015 revenue to be around GBP2.8 million, up from GBP2.5 million a year earlier, despite taking a hit from the translation impact of weak Nordic currencies.
EU Supply said, however, that its Business Alerts unit saw disappointing sales in the second half of the year as it found the UK market was more difficult to penetrate than it had expected. In addition, the group said its competitors have been cutting prices, putting pressure on EU Supply's own pricing and forcing it to focus on less-competitive markets.
The group will be cutting costs across the business to cope with the tough conditions and said it expects to improve profitability in 2016.
Shares in EU Supply were down 29% to 4.5 pence on Thursday morning, one of the worst performer in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.