Lock and security products developer Starcom believes that it can still meet revenue expectations for this year even though a client has failed to order the contracted product volumes.
The Starcom share price fell 0.05p to 1.25p.
Xplosive Solutions had already revised the original agreement to sell Kylos units for the protection of cattle. The original agreement was announced in October 2017, but technical problems delayed revenues. In February, it was agreed that over a period of 36 months, Xplosive would pay a monthly fee for each Kylos unit.
This was expected to generate $500,000 over three years, but only a limited number of units were shipped. Starcom claims that Xplosive is unwilling or unable to continue because of local reason and the contract has been terminated.
Full year revenues were expected to grow by 11% to £6.7m and there was even the chance of Starcom making a small profit. The interims are coming up and they will provide some indication of the progress towards that target.
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