Shares of Avia Health Informatics Plc (AVIA.L) plunged around 16 percent in the morning trade on London Stock Exchange after the healthcare support software specialist reported a wider pre-tax loss for its fiscal year 2012, despite increased revenues.
For the year, pre-tax loss was 0.63 million pounds, compared to last year's loss of 0.54 million pounds.
Revenues increased to 2.3 million pounds from last year's 2.1 million pounds. Meanwhile, gross margin plunged to 29 percent from 41 percent a year earlier on higher costs of sales.
Chairman Barry Giddings said, "The financial year to 31 March 2012 was unquestionably a difficult and turbulent year for the company. We had to manage a difficult financial situation following anticipated sales failing to materialise owing to circumstances beyond the Company's control. As such, we did not make sufficient progress in our strategy of reducing dependency on the UK domestic public healthcare sector and this remains a high priority for the Company."
The company further said it is seeking to raise about one million pounds of new capital in the short term. "More work is required over the next quarter to stabilise the financial situation of the Company and accordingly we are seeking to raise new capital," it said.
Looking ahead, Avia Health noted that the challenging market conditions experienced in core UK markets are continuing.
"While the current level of non-UK sales are still low, we are encouraged by the strength of interest shown from international markets and are optimistic that during the current financial year there will be a shift from the Company's dependence on the UK market towards major international growth markets," the company said in its statement.
The company added that there are a number of prospects and opportunities, which it believes can deliver significant growth, and that it looks forward with guarded optimism to the coming year.
In London, Health Informatics' shares are currently trading at 7 pence, down 1.38 pence or 16.42 percent.
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by RTT Staff Writer
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