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

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021