Shares in broadcaster Cellcast PLC (LON:CLTV) crashed in late-afternoon trading Tuesday after the firm said Brexit uncertainty had reversed a positive trading environment in its second half.
The group, which operates the Babestation channel, said over the last four weeks, it had seen “a material decline” in revenues, with a corresponding drop in EBITDA performance and profitability.
Sufficient cash reserves to sustain trading
The decline had offset a positive trading environment that the firm had noted in its interim results on 25 September, adding that the negative trend was expected to continue into the short-term and through the final quarter, historically its strongest trading period.
The company also said it was working to collect monies due from its clients in Kenya and expected to receive some before year end, although the bulk would not be received until 2019.
Cellcast also said it was taking steps to actively seek new revenue streams and cost reductions to remedy the situation, although it added that it had sufficient cash reserves to sustain trading at the present time.
Shares were down 41.6% at 0.7p.