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Starcom share price plunges as board flags bigger losses
Remote tracking, monitoring and protection specialist dealt a blow to its share price on Thursday, after the board confirmed a significant downgrade to its expectations for the 2017 year ahead of its final results.
The AIM-traded company had set out its expectations for the results in January, which were subject to audit.
It said on Thursday that although the audit process was not yet completed, it had become "clear" that the final results for 2017 would differ materially from those previously anticipated.
"Although the board still expects that, compared with the results for the previous year, the results for 2017 will show a considerable improvement in revenues and gross margins and a significant reduction in consolidated net loss after taxation, the company is now likely to report a consolidated net loss after taxation materially higher than the breakeven to small loss previously indicated," the board explained in its statement.
"The major variances relate to share-based payment costs, unrealised exchange differences and certain holding company costs."
Starcom said full details of the variances from the results anticipated would be given in the audited financial statements, which were expected to be published during the week beginning 5 March.
"As previously stated, the company is experiencing one of its highest levels of orders for delivery in the first half of the year.
"This reflects increased orders for the higher margin Tetis, Kylos, Kylos Air and Watchlock products."