(Sharecast News) - Data solutions provider Celebrus Technologies warned on Tuesday that FY25 revenues were expected to fall short of expectations amid a slow down in customer decision making due to the "increasingly uncertain" global geopolitical situation.
Celebrus said FY revenues were now expected to be approximately $38.6m, down from $40.9m in FY24, whilst adjusted pre-tax profits will be ahead at roughly $8.7m thanks to continued growth in higher margin software revenues, as well as tight management of the firm's cost base.
The AIM-listed group noted that its year-end cash balance was in the region of $31.0m, boosted by the sale of its Sunbury-on-Thames freehold property, and said it remains debt-free.
Celebrus also stated that it had carried out a review of its existing contracts, terms and conditions and the support of the Celebrus software. Celebrus said that commercially, under the majority of current contracts, the risk passes to the customer on acceptance and/or deployment of the license.
However, it said that in the new contract under review, it was likely that the risk will be considered to pass to the customer evenly over the life of the contract, resulting in a change in its accounting policies, specifically concerning the definition of annual recurring revenue and the profile of its software license revenue recognition.
In addition to these changes and Celebrus' move to monthly software license recognition, FY26 will also be impacted by the restructuring of "a longstanding agreement with a large, partner-led, on-premises customer".
"The board believes that the change is likely to result in lower non-Celebrus revenue in FY26 and is in line with the increased focus on higher quality Celebrus software revenue," said Celebrus. "The combined impact of these various factors on group revenues for FY2026 and beyond is still to be determined. More details will be provided with the group's full year results, due to be published on 8 July 2025."
As of 0925 BST, Celebrus shares had sunk 19.58% to 168.88p.
Reporting by Iain Gilbert at Sharecast.com
Celebrus Tech (CLBS)
