LONDON (Alliance News) - Shares in iEnergizer Ltd dropped 18% Thursday after it cautioned that a high-margin project it recently completed would take time to replace.
The software and services company said that its total revenue for the year to end-March will be reported up 2%, but its earnings before interest, tax, depreciation and amortisation will be reported down 7%, as good performances in its IT outsourcing divisions were offset by weakness in its content-delivery division.
During the year it completed a high-margin contract for its eXtensible Business Reporting Language product, which left it with short-term surplus capacity in its content delivery division. It noted that it has a programme under-way to reposition the division, to increase returns and cut costs.
iEnergizer said that whilst this means its content delivery business will be in transition, it has begun an initiative to shift towards high growth, high margin new services.
It will release its full-year results on June 30.
Shares in the company were trading down 18% at 165.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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