Business software group K3 Business Technology Group PLC’s (LON:KBT) enterprise arm has been unable to close several large contracts badly knocking revenue in its final quarter.
Shares crashed by almost 40% on the warning, its second since the start of the year.
Trading has been better away from the enterprise division and pilot customers have been signed up for the new cloud-based packages, but results for the year will be well short of market forecasts even so.
A review of the business has also got underway and K3 will look to re-group around its installed customer base and units that are generating cash.
Shares dropped 96p to 153p.