Claims services company Stream has announced “highly disappointing” first-half results for its former New Zealand business Symetri.

Symetri was sold to Gallagher Bassett in April last year under an earnout agreement.

Under the deal, a portion of the sale price is paid on condition the business achieves a predetermined level of future earnings. Such an agreement is used when the buyer believes the business should be valued below the seller’s price.

Stream has told the Australian Securities Exchange it is working with Gallagher Bassett to improve performance in the second half, warning there is a chance it will not achieve an earnout payment unless the business improves.

Stream’s Australian operations went into administration in December 2015 and were liquidated. Its UK business was sold the following May.

It continues to provide software services to the New Zealand and UK businesses.