Shares in UK government software contractor Triad Group PLC fell 20% to an intraday low of 101.5p on Thursday as interim results disclosed declining revenues, profit margins and cash reserves.
The company slipped to a pre-tax loss of £0.41mln in the six months to end-September from a £0.67mln profit last year, as revenue dropped to £7.12mln from £8.58mln.
The gross profit margin fell to 19.3% from 26.8%, while cash reserves declined to £4.37mln from £5.34mln.
“Although the results for the first half are obviously disappointing, I must emphasise that they are entirely due to external factors beyond our control,” said executive chairman Dr John Rigg, pointing to a "near paralysis in some areas of government procurement".
Despite the poor financials, AIM-quoted Triad Group announced a 2p dividend in line with 2021 payouts.
Triad shares managed a small rebound to 109p during Thursday’s session, resulting in a market capitalisation of £18mln.