Mycelx tumbles on profit warning

Clean water technology company Mycelx shares tumbled on Friday morning after warning on profits as a result of a number of delays in previously anticipated project bids.

Mycelx said it had experienced a "strong" first quarter but told investors that "a significant number" of bids had been moved to later in the year, while some had been pushed out as far as 2020.

As a result of the delays, the AIM-listed group revised its current revenue expectation for 2019 to roughly $20m, below existing market expectations, and cut its guidance for underlying earnings and net profit to $2.5m and $500,000, respectively.

Looking forward, Mycelx noted that it had historically been more active on project bids in the second half of the year, particularly in the Middle East, and expects activity to improve towards the tail end of 2019.

Chief executive Connie Mixon said: "Whilst it is disappointing to have to reduce our financial guidance for 2019, especially after recording a strong performance in Q1, we continue to maintain a robust pipeline of opportunities.

"Although the timing is difficult to predict, historically Mycelx has been more active on project bids in the second half of the year, so we remain well positioned to capitalise on unexpected project opportunities that are not accounted for in the new guidance."

As of 0825 BST, Mycelx shares had tumbled 30.67% to 130p.