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DeepVerge PLC said on Monday its revenue in 2022 is expected to be around 45% to 50% of the previously provided guidance figure.
The Dublin-based environmental and life science group had previously stated it expected annual revenue of £17.2 million, but following a review of major contracts it said several revenue figures were incorrectly recognised ‘in excess of works completed.’
DeepVerge said that the majority of the revenue shortfall in 2022 is now expected to be recognised in 2023.
Following this statement, the company confirmed that the current order book for Modern Water and Glanaco exceeds £10 million, which is expected to be delivered and recognised as turnover in 2023 and 2024.
Looking ahead, DeepVerge said it continues to seek further contracts.
Its current cash balance is approximately £1 million and continues to explore funding options, the company added.
Revenue figures were revised following the appointment of Andrew Waters as chief financial officer in February.
Chair Ross Andrews said: ‘Whilst it is extremely disappointing that 2022 revenues are likely to be so far below the figures provided by the previous executive management team, I’m confident that the new management has robust plans in place to deliver the order book during 2023 and 2024.’
DeepVerge shares were down 46% at 0.79 pence each in London on Monday afternoon.
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