Shares in digital finance group Monitise Plc (LON:MONI) sank nearly 10% as it said it expects 2017 full year revenue to be lower than for 2016 as it transitions the business.
The group said contracts are taking longer than expected to conclude as it moves to its FINKit technology platform, compared to previous platforms.
It said revenue in the second half of the year to the end June, 2016 was similar to the £33.4 million it made in the first half, while earnings before interest, taxation, depreciation and amortisation (EBITDA) turned positive in the second half after a loss in the first.
Chief executive Lee Cameron said the firm took some tough decisions early in the financial year, and saw first EBITDA profitable half-year and a material reduction in cash outflows, as outlined in the February 2016 guidance.
"FINKit remains the main driver of long-term growth at Monitise and whilst contracts are taking longer to conclude than anticipated, I am encouraged by the response of our potential customers who continue to evaluate FINKit."
FINKit, a partnership with IBM, he firm says, provides banks with a modern application development and operations environment built for bank grade security, compliance and performance.