Phoenix IT Group's shares sank this morning after it admitted the termination of a supply contract could leave a £2m dent in its profits.
The infrastructure services firm said it had received notification from the unnamed supplier in question this morning, adding that it is "putting in place alternative arrangements to minimise any disruptions to its customers".
"In the longer term, the board believes that this change will enable it to offer a broader range of services and products to the market," Phoenix said in a perfunctory statement to the London Stock Exchange this morning.
It added: "Whilst it is difficult to estimate the impact on the remainder of this financial year's EBITDA, it is currently estimated to be around £2m."
Phoenix's share price fell double digits on the news before recovering slightly during the course of the morning.
More clues as to the exact nature of the contract may emerge when Phoenix – which was exercising caution in its most recent results statement – reports its interim numbers on 28 November.
Security firm set to become part of acquisitive Shearwater Group
Distributor merges three northern sites into one new hub in Warrington
Activist investor puts forward five director candidates as turmoil continues at security giant
Nima Green asks what is driving public cloud uptake in Germany