Techniche falls 34 per cent after loss of $1.1 million contract
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Techniche shares fell 34 per cent on Wednesday after the tech investor announced one of its subsidiaries had lost a lost contract worth €730,000 ($1.1 million).
Techniche subsidiary ERST Technology lost a contract to supply data services for recycling vending machines operated by German food retailer EDEKA Pfand.
The contract was worth €730,000 per year — almost a quarter of ERST’s revenue.
Techiche’s revenue from ERST would halve to about €500,000 after tax.
Techniche shares closed down 1.8c at 3.5c on Wednesday.
Brisbane-based Techiche had been negotiating to sell off ERST — one of its three main tech investments along with business data managers Urgent Technology and Statseeker.
But the cancelled contract had forced Techniche to reconsider the sale “should a satisfactory agreement not be forthcoming”.
“The Company has for some time believed that ERST was best owned by a local German company, and that the funds from the sale could be used more effectively to grow our other businesses, Urgent Technology and Statseeker.
Techniche’s share price has been in decline since it touched 9c late last year.
Revenue fell 15 per cent to $7.8 million last year while profit fell 14 per cent to $856,000.
The business had about $5 million in the bank at the end of June.
In August chief executive David Nelson resigned.
At the time, Techniche said it hd “a number of initiatives underway which it wants to complete prior to deciding on the appointment of a new CEO”.
The company has been contacted for comment.