| |
Optimisa Warning Prompts Share Price Plunge
UK-based research and consultancy group Optimisa has reduced its revenue projections for the year by more than 15% following what it calls 'extremely disappointing' trading conditions in the last month and a half. Shares in the group have lost almost a third of their value since Wednesday.
Early in April the Group, which owns agencies including Buckingham Research, Andrew Irving, Quaestor and Summit Studios, said the economic downturn was having little impact on its business - now it says trading conditions in the last month have deteriorated substantially, leading to 'a substantial downward revision in our revenue and profit projections following a thorough review of our budgets over the last week', according to Chairman Ron Littleboy.
Disruption caused by the integration of the EQ group, acquired in October 2007, is said to have exacerbated the situation. Optimisa's share price dipped from 170p to a low of 91p yesterday and recovered somewhat to 120p today - around half the peak price last August and September.
'The US market is already contracting and the UK is at best stable' continued Littleboy, who is nevertheless still expecting growth this year and 'a modest improvement' in 2009. Littleboy said planned acquisitions over the next 18 months would now be put on hold and costs cut.
Web site: www.optimisaplc.com .
|
