The RXP Services Ltd (ASX: RXP) share price has had a day to forget on Tuesday.
In late trade the digital services consultancy provider's shares are down 8.5% to 63.2 cents.
What happened?
This morning RXP Services provided the market with a disappointing trading update and a downgrade to its full-year guidance.
According to the release, although the uptake in Digital services is gaining momentum, its underlying business has been impacted by the quicker than anticipated trail off in revenue associated with its commoditised work.
While management believes that things have now stabilised, it has still resulted in a sizeable downgrade to its full-year guidance.
Previous FY 2018 guidance was for revenue of $174.7 million with an EBITDA margin of 15.1%. This has now reduced to the range of $162 million to $167 million, with an EBITDA margin in the range of 14.6% and 15.1%.
RXP Services' shares have now lost 35% of their value this year. The shares of industry peer Technology One Limited (ASX: TNE) are also deep in the red this year, down 11% year-to-date.
