i-Nexus shares tumble as group fails to convert on 'large and growing' pipeline

Cloud-based software provider i-Nexus Global saw shares tumble in early trade after the group announced it had been unable to convert its "large and growing" pipeline of opportunities at the rate required to meet its full-year expectations.

At the time of its interim results in May, i-Nexus expected to see an acceleration in sales during the second half of its trading year and while it secured a number of new sales in the third quarter, the group was unable to fully convert on its pipeline.

i-Nexus now expects underlying earnings for the year to be in line with current expectations, but noted that both total recognised revenue and closing cash balances would be below expectations. As of 30 June, i-Nexus had cash of £3.1m.

"Whilst the slower than anticipated rate of conversion is disappointing, the board remains confident that the strategy being pursued by the group is right to support the acceleration of growth anticipated in future periods," said i-Nexus.

"The increased size and experience of the sales team is driving a growing pipeline of opportunities and improving the proportion of upsell opportunities to existing customers."

As of 1035 BST, i-Nexus shares had tumbled 39.13% to 21p.