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LONDON (Alliance News) - Starcom PLC said Wednesday that it expects full-year revenue and profit to be broadly in line with expectations after a strong second-half, but its year-end cash position would be below expectations.
Starcom develops wireless technology for remote tracking and monitoring. It expects revenue of USD10 million, up from USD8 million in the previous year, and profit to be USD2.4 million, up from USD2.0 million.
It expects post tax profit to be USD1.4 million after one off costs.
Sales for its Helios vehicle global position systems were lower than expected as the company ceased trading with one of its South American distributors, and price came under pressure due of increased competition.
Sales and revenues for its padlock and electronic alarm system WatchLock were ahead of expectations as a higher proportion was sold directly through Starcom rather than through a partner.
Starcom expects trade receivables at the end of the period to be USD7.3 million, higher than anticipated, as a significant portion of sales occurred in the final quarter. As a result, the company's year-end cash position will be below market expectations, and Starcom said that it has been reviewing its banking facilities and working capital requirements.
Starcom will announced its full-year results March 31.
Shares in Starcom dropped 9.8% Wednesday to 18.50 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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