Aukett Swanke flags delays to some contracts

26th Apr 2024 15:05

(Sharecast News) - Smart buildings, architectural and design services specialist Aukett Swanke said in an update on Friday that, as outlined in its recent financial statements, it maintained a robust pipeline of interest, although a number of projects had been pushed back.

The AIM-traded firm, which was holding its annual general meeting, said the start dates for several significant confirmed contracts had been delayed beyond initial expectations, resulting in a postponement of anticipated revenue receipts.

It said the stage technology business, acquired through the Torpedo Factory Group acquisition, traditionally experienced stronger performance during the summer months - a trend expected to persist in the current financial year.

As a result, for the first half of the current year, while the group foresaw reporting substantially larger revenues, it also projected an increased pre-tax loss compared to the corresponding period in the prior year.

However, the outlook for the rest of the year appeared promising, with an anticipation that the majority of the first-half losses would be recuperated before the end of the year in September.

Vanti, acquired by Aukett Swanke in March, had demonstrated a robust beginning under the group's stewardship.

Several potential orders and prior expressions of interest, predating the acquisition, had transitioned into formal contracts, with additional negotiations in advanced stages.

The cumulative value of the confirmed orders exceeded £1m, primarily focusing on master system integration work to facilitate smart buildings.

Encouragingly, the board said the collaboration between the group's senior architectural personnel and Vanti staff had started early, aiming to extend the Vanti offering to a broader clientele, aligning with the rationale behind the acquisition.

At 1314 BST, shares in Aukett Swanke Group were down 9.74% at 1.4p.

Reporting by Josh White for Sharecast.com.