Immedia shares (LON:IME) took a hit on Monday, after the company said that various contract delays and a poor trading performance will widen losses for the year.
The multi-media content group said it expects to report a pre-tax loss for 2017 of around £600,000, compared to £184,372 last year. The news send stocks plunging as much as 30 percent.
The company attributed to loss to delays to contract starts that were scheduled to commence during the last quarter of the year, following a particularly disappointing performance across December.
Moreover, its recent acquisition, AVC Media, has failed to deliver as hoped across the period.
Back in September of 2016, Immedia announced the acquisition of AVC Media and its assets.
However, thus far the deal has failed to boost revenues, after another difficult year for the firm.
Despite the lacklustre update, the company remained optimistic for the year ahead.
In the statement, the company said:
“Nevertheless, despite this result, we have retained all existing clients and attracted new clients over the course of 2017. We remain confident in our strategy and will continue to develop our exciting and innovative business model, which we believe will see us broaden our offering and become ‘partner of choice’ for many leading brands.”
Looking ahead, the statement added:
“Immedia Group enters the new financial year in good shape; we remain confident in our ability to further develop our activities in the UK and across Europe and the management team continue to be encouraged by the pipeline of opportunities and outlook for the business over the medium term.”
Immedia’s clients include HSBC, Superdrug, O2, Subway, JD Sports, Burberry and Ikea. The company was founded back in 2000 by Bruno Brookes, and is in its 17th year of operation.
Mr Brookes is well-known for his career in the broadcasting industry, working with the BBC for a number of years.
Shares in the group are currently down 30.16 percent as of 11.03AM (GMT).