Touchstar PLC (LSE:TST) shares dropped 23% after the company announced that its 2024 revenue is likely to fall below previous forecasts due to delayed orders and slower conversion times.
The mobile data solutions provider noted a shift in customer behaviour towards “just in time” purchasing, reducing previously aggressive order volumes.
Additionally, a major order expected for 2024 delivery has been postponed to 2025, affecting this year’s profit outlook.
Despite these challenges, management anticipates strong cash generation in the second half and has maintained its expectations for 2025.
A strategic review announced in September continues, with updates for shareholders to follow as progress is made.
In early trading, the stock was off 24p at 81p.