Software solutions supplier Idox (LON:IDOX) saw shares sink over 15 percent at market open, after a trading update slashed full year earnings expectations.

The groups expected EBITDA for the full year is now likely to be in the range of between £13 – £15 million, down from previous market expectations of around £22.8 million. Underlying performance excluding the discontinued Digital division is expected to be in the range of £18- £20 million. Group net debt at the half year stands at £25.5 million.

However, an improved performance in the second half of the year is expected by the board, boosted by stronger May and June trading.

Laurence Vaughan, Chairman of Idox, commented:

“The major review and actions taken reflect our commitment to deal decisively with the issues faced by the Group during the last year. Despite the impact on our financial performance this year, this necessary programme of change has positioned the group to deliver an improved performance in future financial years.

“I believe that the Group has good growth opportunities through its continued focus on digital transformation and high quality governance solutions for the public sector. With new leadership in place we can look forward to the future with renewed confidence.”

The group also confirmed the appointment of David Meaden as Chief Executive, who will join Idox on 1st June.

Shares in Idox (LON:IDOX) are currently down 16.22 percent at 32.80 (1000GMT).