LONDON (Alliance News) - Stilo International PLC on Thursday said it will focus on cost reduction as it expects a "material" drop in its earnings in the first half of its current financial year.
The stock was down 43% in morning trade on Thursday at 1.00 pence a share.
The cloud services provider said it is involved in several new contract bids that could only materialise later in 2019. Thus, Stilo is guiding for a "material" decline in revenue and a loss for the six months to the end of June.
In the first half of 2018, the company delivered pretax profit of GBP181,000 on a revenue of GBP874,000.
Looking forward, Stilo said it plans to reduce its operating costs, starting in the coming weeks, as sales have been slower than planned.
