WANdisco shares slump on lower 2015 sales

Shares in big data company WANdisco tumbled 22 per cent after the group warned that 2015 revenue will be below expectations although cost reductions will result in losses being smaller than predicted.
By The Newsroom
Published 10th Feb 2016, 16:57 BST
Updated 10th Feb 2016, 17:00 BST

The Sheffield-based firm said that although the timing of contract wins is variable, it is confident that the group enters 2016 on a strengthened operational footing.

The company’s shares have lost nearly two thirds of their value over the past year.

They closed down 41p on Wednesday at 150p.

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Analyst Andrew Darley at FinnCap said: “WANdisco has reported a full-year trading update to December, highlighting that expected EBITDA losses are better than expected, while revenue is slightly worse than expected.

“Cost-cutting measures have clearly proved effective in the second half of 2015, with the full-year benefit of continuing initiatives set to add increased momentum to improvement in 2016.”

WANdisco said 2015 revenue benefited from deferred revenue released from prior bookings, many of them multi-year contracts.

​The group said it is exerting strong cost control and cash overheads were lower in the second half than in the first half.

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It added that the ongoing benefits of this, coupled with additional cost actions taken this year, will result in a significantly reduced cost base for 2016.

WANdisco said its partner relationships developed significantly in the second half of the year​ and m​arketing and co-selling activity increased with IBM, Oracle​ and​ Amazon​.

Related topics:WANdiscoSheffield