LONDON (ShareCast) - (Sharecast News) - Shares in Immedia Group plunged on Monday after the company issued a profits warning for the full year.


The multi-media content provider said trading in the first half of the year had been weaker than expected as contract conversions from business opportunities were taking longer than first anticipated.

It revised revenue forecasts downwards and warned results for the current financial year would now be below market estimates.

Immedia said revenue for the year to December 31 would be be not less than £4.1m, down from £4.7m the year before, while EBITDA is expected to be in the region of a £0.3m loss, compared to a £0.3m profit the year before.

However, Immedia said it still has a healthy balance sheet and working capital after making necessary adjustments to its cost base, while the Aberdeen business is expected to continue to grow throughout the year after a major AV installation contract win in May.

"The board remains positive despite a cautious trading environment. The business will continue to focus on tightly managing its operating costs and driving efficiencies to ensure that the trading of the business remains secure," the company said in a statement.

"We are also leveraging client engagement whilst our pipeline of opportunity continues to be healthy across our key targets including the development of Omni-channel. We remain optimistic that some of these will be delivered over the short to medium term."

Immedia Group's shares were down 16.28% at 18.00p at 1031 BST.

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