(Alliance News) - IDE Group Holdings PLC on Tuesday said it expects to swing to profit in 2019 despite a sharp fall in revenue.
The cloud & IT managed services provider said it expects to report revenue of GBP28.2 million for 2019 compared to GBP41.1 million a year earlier, with adjusted earnings before interest, tax, depreciation and amortization of GBP1.1 million versus loss of GBP3.9 million in 2018.
The adjusted Ebitda has benefited by GBP900,000 due to the adoption of IFRS 16 with costs now taken in depreciation and finance costs, IDE explained.
Looking ahead, the company said it has strong partnership and direct customer pipeline of opportunities.
Trading so far in 2020 remains broadly in line with management expectations, IDE noted, although the mix has changed due to the Covid-19 crisis.
"We have won and implemented additional projects in the Managed division supporting mobile working across a number of our clients, offset by the expected pipeline of projects being deferred into the second half. The board is confident in its strategy and continues to enhance operational efficiency in our core services and strengthen the senior management team in order to deliver an improved trajectory through 2020 and beyond," the company said in its statement Tuesday.
AIM-listed IDE shares closed 5.3% lower on Tuesday in London at 2.84 pence each.
The company said it will publish its 2019 results on July 31, with the audit taking longer than originally expected due to the restrictions of the current Covid-19 lockdown.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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