RED.L Share News (RED)

Heavily indebted IT and telecoms group Redstone has downgraded earnings guidance for the year to end-March 2009 after a number of adjustments coming to light in the post balance sheet review period.The company now expects adjusted earnings before interest, tax, depreciation and amortisation for the year to 31 March 2009 will be between £5m and £6m, versus previously announced guidance of a range spanning from £7.5m to £8m.The company's shares shot higher, however, after the company revealed it has entered into discussions with Eckoh Technologies about the loan facility between Redstone subsidiary Symphony Telecom Holdings and Eckoh.Eckoh sold Symphony to Redstone in 2006 with a loan facility in place. The total outstanding loan amount is £2.7m plus accrued interest. A repayment of £1m to Eckoh was due on 28 August 2009 but the two companies have been in discussions about deferring the payment. These discussions have not yet been concluded, but an announcement is expected in the near future.