(Alliance News) - Celebrus Technologies PLC on Tuesday said annual profit will exceed market expectations, despite revenue falling short, as the company announced a review of accounting policies to reflect a shift toward its core Celebrus software business.
Shares in Celebrus were down 19% at 170.00 pence in London on Tuesday morning.
The Sunbury-on-Thames, England-based data management company expects revenue for the year ended March 31 to be approximately USD38.6 million, down from USD40.9 million the year before and below market expectations of USD43.4 million.
However, adjusted pretax profit is seen rising to USD8.7 million from USD7.6 million, ahead of consensus forecasts of USD8.5 million, helped by growth in higher-margin software sales and cost discipline.
Year-end cash stood at around USD31 million, boosted by the USD3.9 million sale of a freehold property in Sunbury-on-Thames in March. The company remains debt-free.
Celebrus also announced a review of its accounting policies, specifically around revenue recognition and its definition of annual recurring revenue, which it said would provide investors with greater clarity and focus on the group's core business. ARR is now defined solely as recurring revenue from Celebrus software licenses and managed services, excluding legacy third-party software income.
On a restated basis, ARR rose 14% year-on-year to USD18.8 million.
The company also plans to shift from recognising software license revenue in lump sums to a monthly, pro-rated approach, in line with updated contract terms that include cloud-based hosting and services.
Looking ahead, Chief Executive Officer Bill Bruno said the group is simplifying operations and narrowing its focus on higher-quality recurring software revenue. "Adjusting our approach away from on-premises support has presented us with an opportunity to further simplify the business to more tightly focus on the strategic and operational needs of our core offering," he said.
Full-year results will be published on July 8.
By Eva Castanedo, Alliance News reporter
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