Shares in embattled e-procurement player @UKplc slumped 14% after it warned revenue and profit will be ‘materially below market expectations’ for the year ending 31 December. We said at half time @UK would have its work cut out to deliver the goods (see @UK dives on reversing fortunes). The company is now expecting FY12 results to be 'slightly' down on last year. This means a revenue decline in FY12 versus 15% growth in FY11.
@UK blamed a ‘timing delay’ in recognising c£1m in revenue from new and existing customers. This will now fall into the new year. Meanwhile, a decrease in its non-core Company Formations business and increased investment in sales activities are no doubt also impacting sales and profitability.
Converting opportunities is another real problem for @UK. At half time, its new UK sales team was working on 180 opportunities worth £3.5m. But we now know only £800k will be recognised from this in early 2013.