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Red24

  • BY: Andrew Hore |
  • POSTED: 18/08/2014 |

Risk management services provider Red24 says that a major customer is dropping products that include Red24’s offering, which will hit revenues in the second half. 

The share price fell 2.88p to 12.63p, which values Red24 at £6.29m. Net cash was just over £2m at the end of March 2014.

The change in the customer’s plans could knock £500,000 off revenues this year and up to £1m on an annualised basis. This could reduce profit by £250,000 this year and nearer £500,000 in a full year.

Red24 had been expected to improve its profit from £855,000 to £950,000 in the year to March 2015. First half revenues will be in line with expectations and the interim figures will be published in November.  That suggests a full year profit of nearer £700,000. Longer-term, there will be opportunities to replace some of these lost revenues.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2014_59.pdf

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