LONDON (Alliance News) - Shares in Velocity Composites PLC plunged Tuesday as the company said it expects annual revenue to be lower than previous market views, on the back of delays in finalising customer contracts and the placing of production orders.
Shares in the composite material kits supplier were trading down 23% at 40.70 pence each.
The company expects revenue for its current year ending October 31 to be GBP24 million, 16% higher year-on-year but lower than current market expectations.
"The adverse factors include longer lead times in customers finalising the contractual position, delays in the placing of production orders where contractual terms have been agreed, delays following requests for configuration changes by contracted customers, and in one case the loss of a programme by a customer," the company explained.
As a result of the reduction in revenue, the company now expects to report a "low single digit" earnings before interest, taxes, depreciation and amortisation margin loss.
Velocity added it continues to make progress on other year-end targets.
Velocity Comp (VEL)