By Anthony O. Goriainoff
Shares in RC Fornax fell after the company said demand for its services dropped in recent months and that its performance for the fiscal year will be below market expectations.
Shares in early trade were down 25 pence, or 49%, at 26.50 pence.
The London-listed defense consultancy said Tuesday that it expects revenue for fiscal 2025 to be no less than 4 million pounds ($5.4 million). The company reported revenue of 6.5 million pounds for fiscal 2024.
The company said a number of existing and prospective customers delayed or reduced their short-term spending and development activity after the U.K. government published a strategic defense review for 2025.
The board said it didn't expect the situation to unwind immediately and that the effect could be sustained for the next few months as customers assess their needs and budgets in light of the SDR's findings.
RC Fornax also said its sales team hasn't been able to convert a strong pipeline of leads into revenue-generating contracts at the expected rate. This extends to new contracts booked as anticipated revenue for the year but now expected to be generated in fiscal 2026.
The board said it expected the uncertainty created by the SDR to be temporary and that it remained confident "in the company's prospects and longer-term outlook."
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
June 17, 2025 03:48 ET (07:48 GMT)
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