Touchstar launches review after sales disappoint
Touchstar has launched an internal review of the business after a year in which the data specialist's losses will be "considerably better" than market expectations but sales came in short.
The board is currently undertaking a review of the structure and operations of its businesses in order to simplify and focus on areas where Touchstar holds a strong market position, deep customer relationships, high potential for growth and return on investment.
The review is expected to be completed before full year financial results are released in April.
While revenue for the calendar year dropped short of expectations, it benefited from strong trading in the transportation sector as new clients signed up and old customers upgraded to Touchstar's new generation of products and services.
But losses will be trimmed thanks to higher margins, reflecting the move to more software-based sales and lower costs
Access Control recovered from a slow first half after the introduction of new product lines drove a "substantially better" second half, On Board Retail performed below standard due to customer delays and Logistics traded as expected.
Meanwhile, strong cash generation enabled the group to end the year with a healthy net cash position.
"In line with market expectations, the board expects to see significant improvement in the group's performance in 2019 compared to 2018 despite the group operating in an environment of raised levels of political and economic uncertainty which is likely to persist throughout 2019," said a statement from Touchstar.
Touchstar's shares were unchanged at 34.50p at 0841 GMT.