Celebrus Technologies drops 29% as forecast losses widen

Celebrus Technologies PLC (AIM:D4T4, OTC:DFORF) shares fell 29% to 68.00p after the digital data capture provider cut its full-year outlook, citing slower deal closures and a lost customer.

It now expects an adjusted loss before tax of $2.8 million to $3.0 million for the financial year ending 31 March 2027, versus the market consensus of a $0.9 million loss. The upper end of its revised revenue forecast is $20.5 million, below the $23.7 million market consensus cited in the update.

Celebrus attributed the customer loss to ‘imperfect execution on our part’ and said new business was taking longer to close than hoped.

For the six months to 30 September, revenue is expected to be approximately $9.2 million, including about $8.9 million from software. Lower third-party product revenue weighed on the total, while the adjusted loss before tax is expected to be approximately $1.3 million.

Customer losses also weighed on annual recurring revenue, which fell 2.0% during the half-year, with $0.9 million of the reduction partly offset by new business and additional sales to existing customers.

Cash fell by $10.2 million to $22.3 million from $32.5 million at the end of March. The decline included $3.2 million returned to shareholders through buybacks and dividends, a $4.2 million working capital outflow, and $2.8 million in other cash outflows, including capitalised development costs and tax. Celebrus remained debt-free.