Shares in UK CRM vendor Portrait Software have slumped by over 40% as the company warns of a slippage in new license deals and acts to minimise operating costs in preparation for a more challenging market.
The UK group, which sells online marketing software to retail banks, is reporting a nine per cent increase in first half revenue to £6.9 million following its recent acquisition of the Million Handshakes Norwegian CRM business.
However, despite a solid start to the year in the first quarter, the vendor says Q2 finished weakly "as we saw several expected licence deals slip during the unusual trading conditions which played out as September unfolded".
Portrait says it cannot forecast second half sales performance with any certainty in terms of new business as banks continue to freeze IT spending.
"We are therefore taking measures to minimise our exposure to the anticipated slowdown by reducing operating costs and investment in non core activities, and by protecting and growing our strong recurring revenue base for the long term benefit of the business," says the vendor.
Shares in the vendor moved down 3.25 pence from an overnight close of 7.75 pence as markets digested the news in early morning trading.