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Software & services

Ingenta slumps as profit slides on new project delays

Ingenta PLC (AIM:ING) sank almost 7% on Friday after signalling lower revenue and profit for the year and flagging delays in new projects.

Revenue was expected to have dropped from £10.8 million to £10.2 million in the year to December 31, the publishing and media software firm reported Friday, as profit fell from £2.2 million to £1.8 million.

Ingenta noted focus had been on projects using fresh software to offset an anticipated drop in revenue from legacy services.

However, delays in a number of the new projects meant they did not fully offset the reduction in revenues.

“Delays in implementing these new services due to customer-induced delays have resulted in this impacting on the overall results,” chief executive Scott Winner said.

Cash flow was said to have improved from £0.3 million to £0.9 million though, as Ingenta also pointed to an acceleration in new business wins since the turn of the year.

Shares fell just under 7% to 66.06p.

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