Touchstar profits dive after 'slower than expected' start

Manchester-based mobile data computing solutions firm Touchstar announced on Thursday that its profit after tax dove 193% to just £5,000 in the six months leading to 30 June due to a "slower than expected start" to its first half of trading.

Touchstar said the "current economic climate of uncertainty" caused some investors to delay their initial investment decisions as long as possible, hindering the firm's initial timelines.

Revenues slipped just 4% to £3.98m as a result of Touchstar phasing out older products.

When discussing the remainder of the trading year, Touchstar's chairman Ian Martin said, "To get the business to a proper scale we now need a step change in the growth of sales. This will only come with investment into supporting sales, marketing and project management, and which, if targeted correctly, should ensure the opportunity that has presented itself is taken."

"The short-term remains difficult to predict accurately, but underneath the reporting of historical financial performance, there are numerous moving parts, many of which are showing very positive signs. I remain realistic to the current challenges but optimistic to the potential I can see," he added.

Basic earnings per share dropped to 0.08p from the 4.69p the group posted on 30 June 2016.

As of 0945 BST, shares had lost 21.79% on the day to sit at 68.00p.