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Highlights:
- Revenue Miss: Thruvision's half-year revenue declined to £1.9 million, down from £3.5 million, missing forecasts due to fewer customs contracts.
- CEO Departure: Colin Evans, CEO for seven years, will step down to focus on non-executive roles, adding to the company’s challenges.
- Uncertain Future: Full-year revenue projections are now dependent on the timing of unpredictable contract awards, with inventory delays further complicating the outlook.
Thruvision Group Plc (LSE:THRU), a provider of walk-through security equipment, has seen its shares fall sharply after issuing a warning that its sales will miss expectations. Alongside the revenue miss, the company announced that Chief Executive Colin Evans is stepping down after seven years at the helm to focus on his non-executive directorships. The AIM-listed company revealed a significant drop in its revenue and order pipeline, creating uncertainty for its full-year financial outlook.
Revenue Decline and Order Pipeline Shrink
Thruvision’s half-year revenue for the period ending September dropped to £1.9 million, down from £3.5 million in the same period last year. The company’s order pipeline has also been significantly reduced, standing at just £300,000 compared to £1 million a year ago. These declines are primarily attributed to the absence of new customs contracts, which had been a key revenue stream in previous periods.
Mixed Business Performance
While Thruvision's retail sector showed resilience, with John Lewis being added as a new customer, the broader business faced challenges. The company did secure its first order in the U.S. for aviation worker screening, but overall, the absence of large customs contracts weighed heavily on the company's performance. Thruvision acknowledged that the timing of significant contract awards remains unpredictable, making full-year revenue projections uncertain.
Outlook and Financials
Thruvision’s full-year revenue forecast for the year ending 31 March 2025 has been revised to approximately £9 million, up from £7.8 million in 2024. However, the company warned that inventory lead times could cause a modest slippage of revenue into the next financial year. Cash reserves at the end of the half-year stood at £1.8 million. Following the announcement, Thruvision’s shares fell by 19%, dropping 3p to 13p.
