Innovation Group says contract complications will impact full-year results

Innovation Group's shares sank on Wednesday after the company admitted its full-year results will be impacted by slippage in a number of software contracts.However, it expects its profits to be in line with market forecasts.The software provider said a decline in contract prices and weather conditions impacting claims volumes in its UK property business will "largely" offset the positive impact in profits expected from the sale of its stake in a joint venture with Symbility.The divestment to Symbility Solutions netted it £4m, but the group will continue to use the software for the next five years as part of its property service offerings.Chief executive Andy Roberts said: "When Symbility first approached us to terminate our VAR relationship, we were very keen to see if we could realign the relationship towards our strategy as a service provider."This deal allows us to do just that whilst at the same time be fully reimbursed for the future value of the client contracts that we have previously secured: a true win-win approach for us, Symbility and our mutual clients."The company also announced it had bagged a new contract with a European motor brand. The contract, worth £3.6m, was won via a competitive tender and is expected to be the first of a number of software contracts Innovation Group hopes to win over the coming quarter.Investec analysts maintained their 'buy' recommendation thanks to "gearing potential as sotfware contracts close" and strong basic points.Shares in Innovation Group fell 20.13% to 22.56p on Wednesday at 14:50.