Microlise Group PLC (AIM:SAAS) shares plummeted in Monday's early trade, after the company flagged softer-than-anticipated revenues for 2025.
The transport and fleet-technology provider told investors it now expects to report FY25 revenue of not less than £84 million, which is below market expectations, following softer trading in key sectors.
The company reported lower order volumes from global automotive and construction OEM customers.
Delays in UK customer projects, including one affected by a cyber-attack, have also pushed revenue into FY26.
"Microlise is robustly profitable, cash generative and has a strong balance sheet," said chief executive Nadeem Raza.
Raza added: "Notwithstanding this short-term impact, our view on the company is unchanged and the business fundamentals remain strong.”
He added that the business expects to improve recurring revenue growth and increased EBITDA in FY26, although it would still be below current expectations.
Microlise is implementing cost-saving measures expected to deliver at least £4 million in annualised savings, including a planned 10% reduction in headcount. Earnings (adjusted EBITDA) for the year is now expected at £8.3 million.
"We have a strong base of annual recurring revenues, and the actions we are announcing today are expected to enhance our profitability.
"Together with a refreshed go-to-market strategy, healthy order book and expanding product suite, we are well positioned to deliver sustainable, profitable growth," Raza commented.
Microlise shares fell 27% in Monday's early exchanges, changing hands at 101.63p.