Aukett Swanke cautious on expectations despite new contract win

4th Jun 2024 12:56

(Sharecast News) - Architecture and smart buildings group Aukett Swanke announced a new £200,000 software license contract on Tuesday, with the firm offering up its Smart Core system in a London property over the next 18 months, marking its first major revenue from software without third-party costs.

However, Aukett Swanke noted that despite the contract win, it was still cautious regarding its financial expectations due to delays in traditional project start dates and unsecured prospects, leading to a strategic focus on accelerating its Smart Buildings services. Additionally, some large prospects the Group expected to secure and start in the second half have yet to be secured.

Chief executive Nick Clark said: "Like other shareholders, I am disappointed that the performance of several of the group's businesses has been below the board's expectations. We will not avoid difficult decisions to ensure the existing businesses are positioned for profitability as the newer revenue streams start to come through.

"By contrast, we are delighted to have secured a software licence sale to deliver the building operating system for a substantial property in the City of London. While minor in relation to group revenues, significantly it demonstrates the ability to leverage the contacts and experience of our architectural colleagues to deliver smart building revenues that can scale independently of overheads. This offers the promise of a brighter future for the group - using our expertise and contacts to generate high-margin scalable revenues."

As of 1415 BST, Aukett Swanke shares were down 10.45% at 1.50p.

Reporting by Iain Gilbert at Sharecast.com