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Shares in Aconex have almost halved in value after the cloud-based construction software provider slashed its guidance for full-year revenue and earnings.

Aconex shares were $2.55, or 45.1 per cent, lower at $3.10 at the close of trading on Monday.

Aconex says lower-than-expected sales in the UK and the Americas during the first six months of 2016/17 had prompted it to cut its forecasts.

Uncertainty around Brexit was partly to blame for the softer sales in the UK, and the US presidential election had impacted sales in the US.

Also, a higher proportion of long-term contracts had resulted in lower additional short-term revenue, and currency movements in the British pound and the euro had been unfavourable.

Aconex provides cloud-based and mobile collaboration software for the construction industry, which connects owners, contractors and their project teams.

“First half sales performance in the UK and the Americas was lower than expected due to longer contract lengths and, as highlighted at our AGM, the continued impact of market uncertainty on our UK business,” Aconex chief executive Leigh Jasper said on Monday.

“This has been compounded by delayed decision making in the lead-up to the presidential transition (in the US).”

Nonetheless, Aconex’s operating performance remained solid, Mr Jasper said.

“We will continue to invest in product and sales and marketing to capitalise on the large global market opportunity ahead of us,” he said.

Aconex now expects earnings before interest, tax, depreciation and amortisation (EBITDA) for the full year of $15 million to $18 million – down from $22 million to $25 million previously forecast.

The company expects to generate full-yearl revenue of $160 million to $165 million compared to the prior forecast of $172 million to $180 million.

Aconex is due to announce its half-year financial results on February 21.

 
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