Instem Life Sciences, a software provider to the healthcare industry, has barely been quoted for a year but already has a profits warning under its belt.
The company dropped to a 52-week low after it said profits for 2011 will be "materially below market expectations". Only one broker covers the AIM-listed tiddler and, prior to the profits warning, it was forecasting pre-tax profits for 2011 of £2.90m, up from £1.41m in 2010.
The firm says research organisations, which make up its main client base, are being cautious in software investment and so expected orders for 2011 have been delayed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Instem says its cash position "remains strong" at £3.3m and it is looking at possible acquisitions within what it describes as its "fragmented market place".
The company's stock has dropped 24% in the last 12 months.
BS
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
