IBG finds results no picnic
- Added:
- Feb 28, 2002
IBG expects losses this year to be lower than the 2.9m deficit reported for the year ended 31 October 2001, a more than threefold increase on 2000's loss. Sales for the year declined from 1.82m to 1.07m, but turnover is also expected to improve following the acquisition of Sweatband last October.
IBG “significantly reduced headcount” and moved to cheaper premises as part of its “aggressive” cost-cutting programme. At the end of January, the company retained just 383,000 in cash and stated net assets of 1.2m
In additional to its traditional web design and development activities, the company operates a number of online retail operations including Sweatband.com, a provider of sports goods, LearningStore.co.uk, the educational software retailer and SimplyPicnic.co.uk, a charmingly niche offering for lovers of outdoor sandwiches.
IBG CEO Maziar Darvish said: “Current trading is satisfactory and I am optimistic about the prospects for the business. I believe that there are strong opportunities for value creation within the medium- to long-term.”
Shares have been heavily marked down despite low volume trading - less than 1,000 - at 2.75p, representing a 21.4% drop, capitalising IBG at 1.5m.