LONDON (Alliance News) - iEnergizer Ltd Thursday reported a huge drop in profit in its recently-ended financial year due to the end of profitable projects, reduced revenue from its largest client, and a series of one-off costs.
It also said that Chief Financial Officer Neil Campling has resigned from the company with immediate effect.
The technology services and media solutions provider said that pretax profit in the year ended March 31 fell by more than half to USD8.6 million, from USD20.7 million the year before, as revenue declined 9.4% to USD138.9 million from USD153.7 million.
iEnergizer said that profit was hit by USD3.6 million in expenses relating to employee severance and legal costs, facility relocation costs, aborted bond issue transaction costs and software development costs.
It added that a number of project conclusions in the Content services division had a "significant bearing" on its financial results, and that a reduction in revenue from its previous largest client in the Banking, Financial Services and Insurance vertical to USD7.4 million from USD24.5 million also hit profit.
"We have spent the year reorganising the business from the ground-up and focusing on a go-to-market sales and services delivery model. The emphasis on profitable growth and targets is at the forefront of these changes and has taken time to implement. Combined with a number of industry and company specific headwinds the effect is a clear short-term drag on financial performance," Chairman Marc Vassanelli said in a statement.
"Fiscal 2016 will be a year in which our new, leaner structure, together with executing on significant opportunities in enterprise and continuing momentum in Back Office Services and Real Time Processing can set the company back on a path of renewed revenue growth and operating profit leverage," he added.
Shares in iEnergizer were untraded on Thursday, last trading at 25.20 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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