Affinity bows in with a warning
THE unusual combination of maiden half-year results and a profit warning was served up by marketing group Real Affinity today. The group, which floated on AIM in March with stockbroker Brown Shipley promising high growth, today admitted that forecasts accompanying the £4.2m listing were now seriously out of step with reality, and a redundancy programme was under way to stem mounting losses.
The shares, floated at 8p, fell 1 1/2p to 6 1/4p.
Chief executive Mark Richardson said full-year results will be considerably below market expectations; after orders from travel and leisure clients dried up following the 11 September terrorist attacks in the US. Richardson said 14 jobs from the 70-strong workforce have gone to control costs in an 'exceptionally difficult market'.
The company, which was forecast to make a pre-tax profit of about £360,000 in its full year to 31 March, may now make a full-year loss as restructuring costs hit the bottom line. The job cuts should save £600,000 a year.
Neil Muffitt is joining as finance director with a brief to squeeze the cost base. The loss for the six months to 30 September was £418,000, against a £129,000 profit, on sales up 166% to £5.6m.
