Idox Plc, a U.K. supplier of software services to government agencies, fell the most in more than two months after its chief financial officer resigned.
The shares slumped 8.1 percent to 34 pence, the biggest drop since May 29. Trading volume was more than four times the three-month daily average. The shares have fallen 37 percent this year, giving the company a market value of 118.5 million pounds ($184 million).
Idox plunged 21 percent on May 29 after saying delays in completing license sales in its Engineering Information Management Division would hurt full-year earnings. Growth in the Information Solutions business was also slower than expected in the first half partly because of reduced U.K. government spending, Idox said in May.
Today’s share price decline is a “dramatic market overreaction” that would be corrected because the resignation of William Edmondson has been “wrongly interpreted as bad news” by investors, said Andrew Darley, an analyst at Finncap Ltd. in London.
“The size of the business which it is now, could merit someone with significant stock market experience to take the business into its next phase,” Darley said in a telephone interview.
Chief Executive Officer Richard Kellett-Clarke will take responsibility for finances, assisted by Group Financial Controller Jane Mackie, until a replacement for Edmondson can be found, the company said today in a statement.
Idox provides software to more than 90 percent of U.K. local authorities with applications such as planning systems and election management software, according to the company’s website.