Citadel Group shares have plunged 35 per cent to a two-year low after its revenue took a hit due to delayed decision-making by federal and NSW governments in the lead up to elections.
The Canberra-based information management company said its gross profit margin for year to June 30 would be reduced to about 46 per cent.
Citadel said it wasn’t experiencing the same increase in fourth-quarter customer spend that it had in prior years, and customer-controlled project extensions had been delayed.
A spokesman said clients include both the NSW and federal governments, and both had put off making decisions because of their elections.
“It moved back a couple things into the next quarter,” he said.
Citadel said it expects to make $97 million to $104 million in full-year revenue, with earnings of between $22 million and $24 million.
Citadel reported $108.5 million in revenue and earnings of $34 million in FY18.
“While the short-term results are clearly disappointing, the medium and long-term outlook remains strong, based on the consistent expansion of our qualified sales pipeline,” the company said.
Citadel is pivoting towards being a software-as-a-service company, which said means it will operate at a reduced margin in the short term before scaling out in the medium term.
The company helps clients including the military, laboratories, governments, education providers and financial services companies securely manage their data in the cloud.
At 1216 AEST on Friday, Citadel Group shares were down 35.53 per cent to $4.41, their lowest level since May 2017.