365 warns over sales
- Added:
- Oct 31, 2001
The company expects to report revenue of approximately 14m and pre-exceptional losses before goodwill amortisation in the range of 3.3m and 3.5m for the 3 months to September 2001.
The company remains in a strong financial position with cash reserves in excess of 17.5m at the end of September, and claims to have reduced monthly cash burn significantly over the past three months as its cost reduction measures start to take effect.
The increased losses were explained as part of an ongoing process of closure and restructuring of operations designed to achieve the company's stated strategy of achieving profitability in 2002. Current estimates of second quarter restructuring and other one-off charges have increased to approximately 1.9m, which will impact full year forecasts.
The announcement comes as a severe blow to 365 which is still seeking a path to profitability as well as a finance director following the departure of CEO Dan Thompson in June 2001 and the promotion of the former FD Martin Turner to run the business.
Full results for the second quarter will be disclosed on 6 December 2001. Shares in 365 fell 10% to 8.75p on the news this morning, valuing the company at 17.6m.