LONDON (Alliance News) - Starcom PLC Friday said the recent political and economic upheaval in Ukraine means it has had to defer recognising revenue from a USD1.0 million order for 4,000 of its WatchLock high security padlock and electronic alarm systems.
In a statement, Starcom said a long-standing distributor in Ukraine had agreed to buy the WatchLock units in December but has now said there is doubt over its ability to honour the orders.
After consulting its auditor, Starcom has decided to defer recognising revenue from the order in its 2013 accounts.
Ukraine has been in crisis for months after the former President Viktor Yanukovich rejected a move to closer ties with the EU. That led to huge uprisings in Kiev and Yanukovich eventually fled to Russia. However, in recent days the Crimea has voted in favour of joining Russia, while the new regime in Kiev has now agreed closer ties with the EU.
Starcom is currently finalising its 2013 accounts, which it still expects to publish by the end of March, and said further implications from the loss of revenue will be outlined within them.
The WatchLock units are currently in a warehouse in Israel, which means Starcom can hold them for the customer until a later date, or even sell them to another customer.
Starcom shares were Friday quoted at 16.77 pence, down 8.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Star Energy (STAR)