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IDE Group's shares dip as profit warning reiterated

By Duncan Ferris

Date: Monday 16 Jul 2018

IDE Group's shares dip as profit warning reiterated

(Sharecast News) - Specialist managed IT services provider IDE Group on Monday reiterated warnings that the company's full-year profit is likely to decline from last year.
The AIM-traded company said its efforts to reduce costs had fallen short and revenues for the six months leading up to 30 June expected to come in at about £29m, down from £30m over the same period the previous year.

Meanwhile, EBITDA is expected to be down 90% from the same period at £0.25m.

IDE cited lower revenues from managed services compared to 2017, a slower pace of cost reduction, and legacy supplier agreements as reasons for the company's disappointing financial performance.

The firm's cost reduction programme took place in January, but a company statement said there is "still significant work to be done" to ensure the businesses sustainability.

"Certain supplier agreements entered into during previous periods relating to fibre, data centres and outsourced support have adversely affected profitability for the current period and are therefore being reviewed in the context of current performance," the company's statement continued.

IDE Group expects the results of an ongoing strategic and operational review to be revealed during the third quarter of the year.

As of 1522 BST, IDE Group Holdings' shares were down 10.53% at 8.50p.

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