IQGeo Group said Thursday it expected to report a decline in revenues compared to a year earlier, as the orders delays and the planned reduction in geospatial services kept a lid on growth.
The company said it expected overall revenues, including the planned reduction of geospatial services on third party products, would exceed £25m compared to £27.3m a year earlier.
The company forecasts a 20% increase in higher-margin own product revenue to £20m from £16.6m a year earlier.
The slowing revenue growth comes as the company reduced geospatial services on third party product.
The planned reduction in lower-margin third party Geospatial revenues to £5m for the year, from £10.7m a year earlier were expected to result in Geospatial divisional revenues of more than £9m compared with £16.5m a year earlier.
Order delays also weighed down performance as some orders were delayed to the end of the final quarter, or slipped into 2019, and as result this revenue would not be recognised until 2019.
A direct impact of delays to RTLS contracts was that, by a narrow margin, the first earnout milestone of £1.5m was not triggered, the company said.
At 9:46am: (LON:IQG) share price was -6p at 51.5p