ActiveOps shares tumbled on Monday after it warned that its revenue and profit would fall well short of expectations in its 2028 financial year after a major customer said it would not renew a £3.8m contract.
The software company, which provides “decision intelligence” tools to help large service operations manage productivity, said the customer had told it that it would not renew when its contract ends in March 2027.
ActiveOps shares were 33% lower at the time of writing.
Combined with a slower rate of new business wins in the first half, this would leave its FY28 revenue and earnings significantly below market forecasts. It has removed the contract’s full value from its expectations as a precaution.
ActiveOps said first-half revenue rose 21% to £25.3m, or 14% excluding a one-off termination receipt, and that it remained on track to meet its full-year expectations. It ended the period with £19.6m of cash and no debt.
The company said it would take cost action but would press on with its growth investments, citing the growing need for businesses to measure productivity gains from artificial intelligence as a driver for its software.
Executive chair Richard Jeffery called the non-renewal a setback but said the medium-term opportunity remained strong. But the share price reaction suggests the market is focusing on the here and now.