Fusion Antibodies PLC (AIM:FAB) shed over a quarter of its market value in early trading on Monday as it warned that its revenues and earnings for full-year 2023 are now expected to be significantly behind current market expectations, anticipating that revenues will be not less than £2.8mln.
As announced in its half-year report on 5 December 2022, the company noted that it had a commercially challenging first six months of trading due to a combination of factors, including a number of valuable projects being suspended by clients due to delayed investment into those businesses.
The company said there continues to be uncertainty over the timing of the commencement of several such anticipated orders which is out of its control.
In an update on the company's R&D programme and unaudited trading for the year ending 31 March 2023, Fusion said that in line with its previously announced strategic change to focus on larger integrated service contracts, the company has engaged with several potential clients for the broader service offering, which has been very positively received.
In particular, negotiations concerning a significant order for an integrated service contract have progressed but have not materialised in time for the end of this year. While there is the possibility that negotiations could be completed in the near term, the majority of the revenues would be recognisable in the financial year commencing 1 April 2023, it added.
In morning trading, Fusion shares were 26.3% lower at 35.00p.