Tadpole Technology plunges as major client pulls the plug
Tadpole Technology plc, specialists in secure Web-enable and extend enterprise knowledge and systems, said late on Friday that it had been told by Ordnance Survey GB that it planned to stop work on the Edit Client System, which the two organisations had been working on since 30 March 2007.
The Cambridge-based company said in a Trading Update to the London Stock Exchange that while it had anticipated a reduction in future billings, a complete cessation of activity was unexpected and that it would have a significant and adverse impact on revenues and cash generated by the Geospatial Solutions Division.
In early morning trade today, the company’s share price slid 30% to 3.12p, valuing the whole company at around £12.7m.
Tadpole said it would evaluate the impact of the decision and review available options.
Chairman David Lee (pictured) said: "The level of business from Ordinance Survey has been in decline since November 2006. Whist this represents a major set-back for the Geospatial Division, we will review the situation as quickly as possible and will take all necessary actions to minimise the impact of this decision.
“Despite this set-back on Geospatial Solutions Division, we remain confident about the prospects of the Streaming Division and will continue to focus and invest in the Streaming business following the success in signing licence contracts with Microsoft and Citrix earlier in the year."
The company had previously said it is concentrating its strategic investment on its Streaming Division and is evaluating funding options to support investment in that business.
10th September 2007
