LONDON (Alliance News) - Tangent Communications PLC said Wednesday that it now expects to post an underlying operating profit of GBP1.2 million for the year to end-February, down from the previous year, and said it does not expect to propose a final dividend.
In the previous year the marketing platforms and services provider posted a final dividend of 0.24 pence.
Previously in August the company had guided that its full year operating profit would be comparable to the GBP2.4 million in posted in the previous year, although it later warned at its interim results in November that it was being "prudent" for its full year performance.
The company said its property print business Ravensworth has been hit by low sales during the Christmas period, and as a result its has restructured its site in Newcastle, leading to exceptional costs of GBP700,000.
Tangent does not expect to propose a final dividend. In the previous year it posted a final dividend of 0.24 pence.
The company said that whilst it hopes its online print business will fill capacity in the future, in the short-term its operating margins will remain lower.
Sales from its printed.com business are expected to grow to GBP7.6 million, however trading at its goodprint business has been slower and has not recovered, and Ravensworth trading slowed since November due to a softer housing market. It cautioned that the Ravensworth business was likely to be hit by uncertainty in the run up to the General Election.
Its Tangent Snowball business is performing better following restructuring, Tangent said, but it will take another six months to see the full impact of the changes, it said.
Shares in Tangent Communications are trading down 18.0% at 4.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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