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Alternative Networks said today that financial results for the year ending 30 September will be ‘somewhat below’ previous expectations and pointed the finger of blame squarely at Brexit.
The group said new business performance took a hit over the summer following the UK's decision to leave the EU.
"As the referendum is still relatively recent, the potential longer term impact on the group's future trading performance is unclear,” the company said in a trading update. “However, the group remains in a strong financial position with recurring revenues comprising over 75% of sales, and continued robust cash generation which supports the progressive dividend policy."
Alternative Networks said that despite the degradation in new business performance, there were signs of a rebound in August and September. The IT and telecoms provider sought to reassure investors, stating that there the next financial year held a 'robust' pipeline/
"We are disappointed to have seen business uncertainty over the summer in the wake of the EU referendum impact our Advanced Solutions business,” said Chief executive Mark Quartermaine.
“But the pick-up in new business after the summer reassures us that our business remains well positioned to benefit from long term trends. We will update the market in more detail at the time of our full year results," he added.
Alternative Networks is the latest company to feel the Brexit fallout. Shares in HPE fell 7.6% on news of the United Kingdom deciding to leave the Union. During a conference call with analysts, Meg Whitman admitted that there had been ‘a pause in purchasing’ in the UK.
Oracle also bemoaned the impact, with CEO Safra Catz telling analysts that Brexit had caused headwinds and the decision had come largely as a surprise.