The share price of digital and communication services group Hasgrove collapsed on Friday, after the firm revealed that full-year profits would be half of what is currently expected.
The group now expects a pre-exceptional operating profit of £1.5m in the year ending 31 December, well below current market expectations of £3.3m. This figure would fall to £0.8m after excluding contributions from Interel, its European corporate affairs consultancy business which it offloaded in July.
Hasgrove said that The Chase and Landmarks design businesses “have found trading difficult” while overruns on two business solutions projects have also hit profits. Delays in client-spending decisions have also been seen.
"We are clearly very disappointed to be reporting a profits warning and will continue to take the required action. We continue to control costs where appropriate and are focused on servicing our clients,” said chief executive Paul Sanders.
"Following the sale of Interel, the Group is now a focused digital and communications business.
"Investments in intellectual property, people and office relocations are starting to show results. Interact generated more intranet sales in the first half than in the whole of 2010 and following the announcement of Unilever joining the client roster, Amaze has won further significant pan-european and global accounts."
Digital communication services group Hasgrove (HGV) announced it expects to report a 2.8% fall in revenue to 13.7 million pounds, as well as a pre-exceptional operating profit of 1.6 million pounds, down from 1.7 million pounds, in its half year results at the end of September. Lower operating profits reflected a difficult start to the year, the group explained, as major clients delayed spending. Net debt increased 10.5% to 7.4 million pounds as of 30th June 2011 from adverse currency movements and the move to a new London office. Hasgrove shares closed 9p behind at 61p.
Hasgrove plc (AIM: HGV, 'Hasgrove', or the 'Group'), the pan European marketing and communications services group, announces that its Amaze division has launched AmazeOne, a digital nerve centre which presents a view of a brand's presence across all digital channels through one interface.
AmazeOne focuses on the need to manage a brand through digital social channels, bringing all data into a single view and allowing brands to publish into social channels through this single interface. It contains technology to extract and analyse data, along with an auto translation tool ideally suited to the needs of multi-national brands. Its governance module also helps organizations solve the challenge of managing and organising their digital social presence internationally.
Future functionality will also include a strategy and insight centre, providing a single place to understand emergent technologies and marketing trends alongside the data generated by the AmazeOne's diagnostic tools.
Rod Hyde, Hasgrove Chief Executive, commented,
"AmazeOne is Amaze's first product offering and is a diversification for Amaze away from a purely services oriented business. By combining strategy and technology into a single proposition, our customers will have the insight to help their businesses make the most of the ever expanding digital environment."
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.