LONDON (Alliance News) - Tangent Communications PLC Tuesday said it expects its first half profit in the current year to be down on the previous year as it rationalises its online print businesses and as the company posted a fall in pretax profit for it recently ended financial year.
The online printing and digital marketing firm did not propose a dividend for the year. In the previous year it paid a final dividend of 0.24 pence.
For the year to end-February the company reported a pretax profit of GBP456,000, down from GBP2.4 million a year before, as revenue declined slightly to GBP26.2 million from GBP26.5 million, and its margin fell to 4.5% from 9.4%. It also posted GBP710,000 in costs related to downsizing its Tangent Snowball business, rationalising its Ravensworth business and relocation expenses.
Tangent said sales of high-margin products, particularly business card sales, declined and were replaced with lower margin sales.
Online print sales grew more slowly than anticipated, although general demand to buy print on line remains buoyant, Tangent said.
Tanget is looking to rationalise its online printing business to focus on driving sales on its printed.com platform, including transferring its Goodprint business into printed.com.
"2014-15 was a challenging year for Tangent; our profits were down and performance in certain areas of our business fell short of expectations," said Chief Executive Timothy Green in a statement. "People and businesses will continue to buy more print online and the range of products they demand will expand. Tangent remains well positioned and committed to grow its share of this exciting market place."
Shares in Tangent Communications are trading down 19% at 3.23 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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