MyCelx Technologies Corp. (LON:MYX) shares plummeted on Friday after the firm cut its full-year guidance as delayed project bids hit revenue.
The company, which supplies clean water technology to the oil and gas market, said a significant number of project bids that were expected in the first quarter have been delayed until the 2020 fiscal year or later this year.
MyCelx said it expects activity to improve in the second half as it has been more active on project bids, particularly in the Middle East.
To offset the impact of delayed project bids, MyCelx said it has taken action to cut costs.
It has revised its revenue expectation for 2019 to US$20.0mln, below market forecasts and last year’s revenue of US$27.0mln. Earnings (EBITDA) are expected to fall to US$2.5mln from US$5.6mln last year and net profit is projected slide to US$500,000 from US$3.1mln.
The company expects to end the financial year with net cash of US$4.5mln.
"Whilst it is disappointing to have to reduce our financial guidance for 2019, especially after recording a strong performance in Q1, we continue to maintain a robust pipeline of opportunities," said chief executive Connie Mixon.
"Although the timing is difficult to predict, historically MyCelx has been more active on project bids in the second half of the year, so we remain well positioned to capitalise on unexpected project opportunities that are not accounted for in the new guidance."
In morning trading, MyCelx shares fell 38% to 115p.