Snoozebox shares plunge on unexpected revenue hit

Snoozebox shares tumbled on Monday morning after the company announced its revenue for 2012 will show a 'material shortfall' compared to its trading update earlier this year.

At the end of January the group said it anticipated full-year revenues to exceed expectations following the success of the leisure company's portable hotel services.

However, the firm has now said revenue will be lower, coming in at no less than £3.78m, with the decline reflected in its earnings before interest, tax, depreciation and amortisation (EBITDA).

The shortfall is a result of the requirement for recognition of income under IFRS, the firm said, adding that some or all of the amount may reverse and as such be recognised in the current year.

In a statement Snoozebox said: "The company has a strong pipeline of event related and other deployments for the current year as a result of which the directors remain confident of the company's prospects.

"Snoozebox is working with its auditors to finalise the 2012 accounts and the Directors expect to announce its results for that year together with a review of current trading not later than April 26th 2013."

The share price fell 17.22% to 56.50p by 09:10 on Monday.

NR