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Eftpos company Provenco yesterday warned its ebitda profit would be half what it had previously signalled.
That sent its shares tumbling down 25 per cent - 22 cents to 68 cents - before closing at 72c. The stock has lost 43 per cent of its value since February.
It had forecast ebitda of $9.5 million to $11.5 million for the June year but now says it will only be $4 million to $5 million.
"This change reflects significant movements in both its domestic and international businesses which have only just become apparent," chairman David Wolfenden said in a statement.
"Movement in contracts and the delays winning new projects has seen revenues lower than projected in April and May," Wolfenden said, adding that the high value of the dollar was having a negative impact.
Provenco's international business had experienced "significant slippage" with contracts and prospects.
He said Provenco had not lost any significant business through the delays and market opportunities remained in line with expectations.
The company had just completed a strategic pilot project in Hong Kong and now had a foothold in India, the Middle East and Europe including Britain.
The purchase of Indentics Group in Asia had further strengthened the regionalisation of its Vantex business, but revenue growth had been slower than expected.
In New Zealand, the company had had lower than expected sales.
As well, Provenco Payments had been hit by over-valuation of outdated stock to the tune of $600,000.
Wolfenden said costs were well controlled.
- NZPA
