LONDON (Alliance News) - IQGeo Group PLC on Thursday said it expects its revenue in 2018 to be lower than 2017 in a "transformational year".
Shares in IQGeo were down 7.8% at 53.00 pence each.
IQGeo said its year was "shaped" by the sale of its RTLS Smartspace business on December 31, to re-focus the business on its geospatial offering.
The company said it will set out its new strategy with its final results in mid-April.
IQGeo's overall revenue is expected to decrease 8.4% to around GBP25 million from GBP27.3 million. The company is expecting a 20% increase, however, in its higher margin product revenue to GBP20 million from GBP16.6 million.
The company said some its orders were delayed into 2019, which was partially attributed to the lower revenue.
IQGeo's Geospatial unit's revenue is expected to decrease 45% to GBP9 million from GBP16.5 million on planned reductions in revenue from third party lower-margin products to GBP5 million from GBP10.7 million.
The company said its myWorld sales pipeline "remains strong" with new customer prospects and expanded deployments in negotiations with existing customers.
"2018 was a transformational year for IQGeo with the conclusion of the RTLS SmartSpace sale, enabling the creation of a focused geospatial software group with a strong balance sheet. IQGeo will continue to invest in the product development, sales support and partnerships that will allow us to build an industry leading offering," said Chief Executive Officer Richard Petti.
He added: "We are well positioned to exploit high profile digital transformation initiatives within communications and utilities companies thereby delivering significant productivity improvements and cost saving for our customers."
Iqgeo (IQG)