Last checked at 23 May 2013 14:19
Indeed Online PLC ("IOL" or the "Group")
Trading Update
Indeed Online PLC ("IOL"), the online conveyancer, announces a trading update.
In our half year results, we highlighted that we expected our conveyancing business, Runnett & Co, to show a loss in the second half of the financial year to 31 March 2013 and also its sensitivity to existing and new clients. As predicted, the second half proved challenging and the first two months of the current financial year have continued in a similar fashion although we have seen some pick up in May which we expect to continue throughout the seasonally busier summer period.
The online business continues to make steady progress in terms of customer numbers although it remains lossmaking.
We continue to scrutinize our cost base so as to minimize cash burn, including making significant reductions in the salaries and fees of the Directors. The cash balance in IOL at the end of April 2013 was £1.288m with no external indebtedness.
In light of the headwinds we face in Runnett & Co, combined with the cost of making the necessary operational improvements this business, the Board will be reviewing its options for both its businesses over the coming weeks. For the avoidance of doubt, this review is not expected to lead to a sale of the Group.
The Board willupdate shareholders as soon as there are significant developments.
Ends.