Intercede Group warns of operating loss following delays in US orders

Cyber security company Intercede Group said delays in US orders could result in an operating loss for the year.

Cyber security company Intercede Group said delays in US orders could result in an operating loss for the year.

Shares fell 16.78% to 62.00p as the group said uncertainty surrounding the US budget impacted sales to government departments and defence contractors.

"While Intercede had previously expected this uncertainty to be resolved in December 2012, President Obama's compromise agreement with Congress on the 'fiscal cliff' has delayed any decision on spending cuts until at least the end of February 2013," the company said in a statement.

The fiscal issues have caused the deferral of new orders in the company's next financial period.

Intercede, which also supplies to businesses in the UK and Europe, relies heavily on the US market for revenues so it could prove to have a material adverse impact on results.

"Given the extent of our planned investment in organic growth, this would result in an operating loss for the year," Intercede stated.

Cash balances were expected to remain above £6.0m.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Free 6 issue trial then continue to