Horizon downplays drop in profits
Blames Xmas and stricken UK customer
System builder and IT distributor Horizon Technology Group said today that revenue fell below expectations in the last quarter partly because of a dip in orders in December.
It also said in a trading statement that "a significant UK customer whose business has gone into administration" meant it was adding €800,000 to bad debt provision.
The firm did not reveal which beleaguered company owed the outstanding debt to Horizon.
The Ireland-based firm, which derives most of its business from the UK, said it expects diluted adjusted earnings per share in 2007 to show modest growth in the single digits.
In its last set of quarterly results, Horizon reported mixed fortunes with profits tumbling by nearly nine per cent in its Irish division, while in the UK revenue was up more than 18 per cent.
Despite the slowdown in orders, which the disty claimed had simply "slipped", it said it was "in a very strong financial position" for the year ahead.
Horizon shares fell by nearly five per cent in the City this morning following the trading update.
The firm will release its preliminary results for the year ended 31 December 2007 on 13 March. ®