(An earlier version incorrectly stated the nature of the share price move. The correct version follows.)
LONDON (Alliance News) - Starcom PLC, which had issued a profit warning earlier in the year, Monday said it was pleased with its progress in the year to date and now expects its full-year results to show a "good improvement" compared with last year's results as it sells its products into more markets.
The wireless tracking products maker reported higher revenues and margins for the first half of the year, although it swung to a loss thanks to the cost of listing on AIM earlier in the year and as it invested in bulking up its sales team.
Its net loss for the six months to end-June was USD86,000 compared with a USD917,000 profit a year earlier. However, revenues increased to USD3.5 million, from USD3.4 million, and its gross margin rose to 56.7% from 54.5% as it changed suppliers in Taiwan, securing more favourable contract terms.
"While the revenues and profits for 2013 are likely to be below market expectations, they are expected to still show good growth over those achieved in 2012 and the board is confident that this growth will continue in 2014 and beyond," the company said in a statement.
"Our product ranges are well received in the market, but in some cases are taking longer to translate into firm sales. For example, the marketing plans with our joint venture partners regarding Multilock took longer to progress than anticipated but are now beginning to show positive results. In addition the company continues to work on improvements to its products which in turn should see results next year," it added.
Starcom's shares were down 17% at 21.11 pence Monday morning, one of the biggest fallers on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Star Energy (STAR)