David BurrowsAim-listed Earthport, the payment network for cross-border transactions, anticipates that revenues are expected to be 10%-15% below current expectations for the financial year ending 30 June 2018.
The company puts the adjustment down to delays in some expected contracts and client implementations and a recent change at one of its leading e-commerce clients.
Many of these contracts and implementations are expected to complete within the current financial year, but will result in lower revenues for FY2018.
In addition, a recent change at one existing e-commerce client has resulted in a loss of approximately 5% of 2018 projected revenues as this client changed its plans for a UK corridor for domestic payments for reasons specific to them. They remain a client and expect to work with Earthport for other international corridors.
EBITDA is expected to be broadly in line with current market forecasts.
The company’s share price took a pounding following this latest business update – in late morning trading the stock was down 30.68% at 10.19.