Data analytics group Cirata saw its shares more than a third lower after a sharp revenue collapse overshadowed a growing sales pipeline.
Cirata (AIM: CRTA) shares tumbled 31.3% to 8p after the data analysis technology supplier revealed interim revenues had collapsed from $4.8m to just $1m, wiping out much of the progress the company had pointed to in recent trading updates.
The steep fall came despite management highlighting a modestly higher annualised contract value of $5.3m and a growing sales pipeline, which it attributed to changes made to its sales organisation. Investors, however, focused on the scale of the revenue decline and a cash position that has more than halved over the past year.
Overheads at Cirata were trimmed to $6.3m from a higher base previously, but the reduction was nowhere near enough to offset the near-80% drop in top-line income during the period. Cash reserves stood at $2.6m at the end of June 2026, down sharply from $6.1m a year earlier, raising fresh questions over the pace of cash burn relative to the improving but still modest contract wins.
The update landed alongside a busy session for other AIM names, with Filtronic gaining 9.3% on an $8m US space payload contract that helps diversify its revenue base away from SpaceX, underlining the contrast between companies securing fresh order wins and those, like Cirata, still working through a weak trading backdrop.
Cirata will need to show that its reshaped sales effort can convert pipeline growth into bookings quickly enough to stem further cash depletion, with investors likely to watch closely for any update on contract conversion or additional funding needs before the next scheduled results.
This report is based on Cirata’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Maxim Hopman on Unsplash.
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