SHARES in Scots technology firm Craneware have plunged 35 per cent after the company said sales had been lower than expected in recent months, wiping around £280 million off its stock market valuation.
Edinburgh-based Craneware, which supplies financial monitoring systems used by US hospital operators, said the launch of three new products had failed to have the expected impact on sales.
“The timing and quantity of sales closed in the second half of the year have been lower than anticipated, as the market processed these launches,” Craneware told investors in a trading update.
Read more: Thousands of jobs at risk unless Scotland embraces financial technology sector
As a result, the company said, sales are expected to grow by six per cent in the year to June 30.
The update indicates that trading conditions have become much more challenging since Craneware posted a 15 per cent increase in first half sales in March. The company said then it had a strong sales pipeline and entered the second half with great confidence.
Craneware said yesterday it expects to increase underlying earnings before exceptionals by around 10% in the current year. It grew first half earnings by 20%.
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Craneware said its research and development spend will total around $9 million in the current year against $4.7m last time.
The Aim market-listed company also revealed it had incurred $1.5 million exceptional costs relating to professional fees for a “significant and well-advanced acquisition opportunity” it decided not to pursue in the period, without disclosing details.
However, chief executive Keith Neilson said the company continues to look to the future with high levels of confidence. It has a significant and growing pipeline, which it is focused on converting into confirmed sales.
Craneware shares closed down £10.40, at £19. That left it with a market capitalisation of £507m.
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