Shares in LoopUp (LOOP) plummeted by almost a half on Wednesday, after the group said it expected revenues and cash profits for 2019 to come in around 7 per cent and 20 per cent below market consensus, respectively.
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The downgrade has been in part due to subdued revenues from the remote meeting software group’s long-term clients, which management blamed on “general macro-economic factors” rather than declining customer numbers. LoopUp also said senior staff time has been disproportionately taken up by management and training activities, to accommodate a spike in overall staff numbers.
Following this update, Panmure Gordon has lowered its cash profit estimates by 26 per cent for 2019, and 39 per cent for 2020.
