Intercede Group (AIM:IGP) PLC warned that its revenues for the year to end-March will be 9% lower than the previous year despite the highest number of new deployments for the digital identity security business in years.
The company, which works with governments and large organisations, blamed delays on “a number of large new opportunities” meaning it failed to close a substantial license during the year.
On top of that, Covid has continued to impact trading outside the US, it said.
But Intercede said it expected to remain profitable, as recurring revenues from support & maintenance, alongside repeatable professional services revenues, now “largely cover” annual fixed costs.
The shares plummeted 37% to 37p at the open but by mid-morning had recovered to 46p, down 21% on the day.