Shares in Cordel Group PLC plunged on Monday after it warned full-year revenue will be lower than forecast.

The London-based company, which uses artificial intelligence to supply transport corridor analytics, expects to report revenue in the range of £4.7 million and £5.0 million for the financial year to June 30. It would represent growth of up to 12% from £4.4 million a year prior.

But Chief Executive John Davis said it will be ‘lower than forecast’, despite the firm making ‘excellent strategic progress’ in the financial year.

Broker Cavendish lowered its financial 2025 revenue forecast to £4.8 million from £6.2 million.

In response, shares in Cordel fell 23% to 6.25 pence each on Monday morning in London.

CEO Davis said economic uncertainty, particularly in the US, has ‘unfortunately led to protracted sales cycles and delayed revenue, which has impacted our normally strong second half revenue’.

While sales momentum has ‘recently recovered’, the majority of the revenue from new contracts is now expected to be recognised in the next financial year, Davis added.

Chair Ian Buddery said the firm is ‘frustrated’ by lower industry activity in the second half but ‘continues to push hard on every revenue opportunity that can be secured by the 30 June close’.

Cordel said it is pleased with the progress of its Positive Train Control product initiative, ahead of the anticipated launch next month.

It also expects closing cash position to be improved compared to the prior year’s £1.0 million.

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