Remote Monitored Systems slides after GeoCurve's 'slow start'

Remote Monitored Systems' shares dived on Friday after reporting that its Geocurve business has suffered a "slower than expected" start to 2019.

The company said the first quarter struggles of the survey and inspection services business had been due to the need to dedicate more resources than expected to the Environment Agency's Thames Estuary Asset Management 2100 programme, a 10-year programme to refurbish and replace tidal flood defences in London and the Thames estuary.

Cost saving measures have been implemented to minimise the effects of the resulting delays, while a number of new contracts have been won which should begin to contribute to sales in the second quarter.

The AIM traded company also announced the resignation of its managing director Gary Nel, who will leave the group at the end of this month, with a process to identify a successor already underway.

Trevor Brown, chief executive of Remote Monitored Systems, said: "Swift action has been taken to address the issues arising at Geocurve and we look forward to renewed growth in sales to new clients. We remain excited by the opportunities at GyroMetric, both in the wind industry and in new sectors. The board continues to seek further opportunities to enhance shareholder value."

GyroMetric, which RMS acquired a 58% controlling interest in back in August, has been invited to present the company's digital monitoring approach for wind turbines at a special event organised in Berlin by the British Foreign Office, before the business conducts trials for two major wind turbine manufacturers, the first of which is expected to start in June.

Remote Monitored Systems's shares were down 20.00% at 0.70p at 0924 GMT.