Growth in revenues for i-design will be slower than hoped.
The cash machine advertising technology company reported a higher loss of £291,000 on revenues 84% higher at £947,000 in the six months to March 2008.
Full year revenue estimates have been cut from £3m to £2.1m because of delays to the implementation of the ATM:ad contract with Tesco Personal Finance. This covers 2,500 cash machines operated by Royal Bank of Scotland. There is scope for rolling out the system to other RBS-owned cash machine estates. HSBC has decided not to proceed with the implementation of the ATM:ad system.
Orange was the first company to run an advertising campaign across more than one cash machine network, which indicates the potential for i-design’s technology.
There is net cash of £2.3m in the balance sheet so there are no worries about i-design running out of cash. This cash figure is expected to fall to £1.7m by the end of September 2008.
Analysts’ expect revenues to double to more than £4m in the year to September 2009. That should enable the company to break even.
The shares fell 6p to 40.5p each, valuing I-design at £5.71m.
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