Aferian PLC on Friday said the company increased borrowing after reporting a significant fall in revenue.
The Cambridge, England-based business-to-business streaming solutions company said in the year ended November 30, pretax loss widened to $64.7 million from $16.9 million the year prior.
Revenue fell 48% to $47.8 million from $91.1 million.
Aferian shares were down 12% to 5.50 pence each in London on Friday morning.
Chief Financial Officer Mark Carlisle said: ‘[The decline in revenue was] primarily driven by a significant decrease in the number of devices shipped during the financial year. This is due in part to macro-economic impacts and customer destocking activities prompted by reduced lead-times, following the accumulation of stock to navigate COVID-19 supply chain challenges.’
Entering the current financial year, management said the company took action to identify and deliver efficiencies in order to reduce costs.
Net debt at March 31 stood at $12.3 million, increased from $6.1 million at the end of the reported year.
To provide financial stability going forward, Aferian extended its loan facilities until September 2025, and net debt is expected to continue rising.
Aferian said multiple contract extensions with customers have been secured with delivery expected during the first half of the current year.
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