Sysgroup Share News (SYS)

Daniel Stewart has lowered its full year revenue outlook for System C Healthcare after the company reported on Wednesday that the fast pace of structural change within the NHS has resulted in a sharp downturn in demand for its services.The broker is now projecting revenue for the year to May 2011 of £34.5m, down from its previous forecast of £40.7m.On the bright side, System C reports that there has been increased interest in its Medway patient administration system (PAS) but the time to convert initial Medway enquiries into firm orders could be between six and 12 months. This timing issue likely to have a significant impact on current trading, according to company management, prompting Daniel Stewart to slice its earnings before interest, tax, depreciation and amortisation outlook to £5.3m from £8.9m for the current year. "Again, the severity of downturn in services orders and time-lag on Medway revenue completion remain key factors for this outlook," the broker said.The target price has been reduced from 72p to 64p ahead of results due on 27 September. Daniel Stewart's "buy" recommendation is retained.