IT service management firm, Universe Group’s (LON: UNG) shares are falling on Monday after the company said that revenue from its critical second-half project is delayed and not expected to be recognised until the first half of 2021.
The investment in the project will be recognised in the current financial year, Universe stated.
In an update for the year, the UK-based company revealed that revenue for the second half of the year is expected to be in line with that of the first half, but despite the project delay, increased level of investment and coronavirus challenges, it still expects to report a “modest level of adjusted EBITDA profitability for the full year.”
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The business is in a strong financial position and expects to close the year with a temporary net debt position comfortably within its agreed facility limits.
“We are working on a small number of high-value projects while continuing to focus on a significant level of recurring and repeating business. We have a resilient financial position and are cautiously optimistic about our prospects for next year,” said Jeremy Lewis, CEO of Universe.
Universe Group shares fell after the announcement, currently trading at 3.66p, down 13.88% from Friday’s close at 4.26p.
