Arcontech – Trading Update November 21

ARCONTECH GROUP PLC 

(“Arcontech” or the “Company”)

Trading Update

Arcontech
(AIM: ARC), the provider of products and services for real-time
financial market data processing and trading, announces that its trading
performance has regrettably fallen below
current
market expectations due to one customer reducing its market data spend
with the Company, and notification from another customer that it will
not be renewing its contract
from the start of second half of 2022. The two changes are unrelated
and do not involve customers with Arcontech’s core MVCS server-side
solution. They instead reflect one customer greatly scaling back its
market data team and market data requirements, and
a second choosing not to renew its contract for one Arcontech product
because it is switching to use a solution included in a legacy, bundled
contract.

The
Company is consequently revising its year end market guidance to
reflect this net reduction of revenue. The reductions will take effect
at the beginning of the second half of Arcontech’s
financial year and consequently will negatively impact revenue by
annualised c.£300K, half of which will impact in the current financial
year.

However,
notwithstanding the above the Company senses an overall improvement in
the business outlook which until now has seen growth affected by Covid.
Its clients are now renewing interest
in new business projects and the Company’s sales pipeline continues to
be healthy. The increasing opportunities to travel and cement new
relationships also bode well for the future and our ability to recover
lost ground. During the last year Arcontech has
improved its offerings to provide more value and the quality of its
solutions together with its ability to help reduce spend, positions the
Company well to absorb any lost business and resume growth as the
pipeline matures. Arcontech continues to be fully
confident in the strength of the business and is working to leverage
its cash reserves, when the opportunity arises.    

Enquiries:
Arcontech Group plc	020 7256 2300
Geoff Wicks, Chairman and Non-Executive Director
Matthew Jeffs, Chief Executive
finnCap Ltd (Nomad & Broker)
Carl Holmes/Tim Harper	020 7220 0500
To access more information on the Group please visit: www.arcontech.com

The
information contained within this announcement is deemed by the Company
to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.