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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
