Microgen drops on contract delays

Administration software firm Microgen saw its shares lose seven per cent of their value after it said a number of deals in the financial sector were taking longer to complete than expected.

This meant revenues in the second six months of 2012 were now expected to be around 10% lower than the first half of the year.

"Opportunities [in the Financial Systems Division] continue to progress although, due to the market environment, particularly within the financial services sector, a number of these have advanced more slowly than anticipated," the firm said.

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However, it added that due to the group's "conservative operational approach", earnings for the second half were expected to be consistent with the first part of the year.

Microgen said there had been no significant changes since 1st July in its financial position and its balance sheet remained strong.

Following payment of the interim dividend of £0.9m in August, the group had net cash of £26.3m at the end of Ocbtober, compared to £27.1m at the end of June