OTAQ in revenue warning

Aquaculture and offshore technology business OTAQ has warned that revenues for 2024 are likely to be below the current market forecast. Orders are taking longer to convert than was foreseen, the company said.

OTAQ has stressed that the pipeline of new orders remains strong and should see revenue coming in through next year.

In a statement OTAQ said: “The Offshore division, is continuing to work on a number of existing and significant new orders and sales for the division in FY24 will be in line with management expectations.  However the Aquaculture division has seen existing customers and new sales prospects defer the decision to place firm orders.”

The OTAQ board has taken action to restructure the business over recent weeks to enable the company to focus on its core, profitable operations and prospects. Earlier this month, two directors, Harald Rotsch and Sarah Stoten, stepped down from the board as part of this drive.

The board is now evaluating further potential cost savings including seeking shareholders’ approval in a general meeting to withdraw the Company’s shares from trading on the AQSE Growth Market.  A further announcement is expected shortly.

Phil Newby, Chief Executive Officer, commented: “We are encouraged by the pipeline of new opportunities across the group. While conversion of these opportunities is often more protracted than we would hope, and the outturn for the current financial year is uncertain, OTAQ’s strong relationship with our core customer base means that the prospects for next year are encouraging.”