Optimisa warns on profit amid ‘disappointing' conditions

UK-- Research and competitive intelligence group Optimisa has warned investors that its 2008 revenue and profit may fall significantly below expectations, due to “extremely disappointing” trading conditions.

In a trading update ahead of its AGM today, the firm announced that it has shelved expansion plans, put acquisitions on hold for the next 18 months, and embarked on a cost-cutting drive.

Chairman Ron Littleboy said a “poor” performance in March had initially been put down to timing issues, but problems have continued into the second quarter, with disappointing results for all three of Optimisa's main units – KAE: Marketing Intelligence, Quaestor and Buckingham Research. The situation was exacerbated by the disruption caused by the integration of the EQ Group, which Optimisa acquired in October 2007.

Last year Optimisa doubled its revenue to £11.42m, and had previously said it hoped to double it again this year, but has now reduced its revenue projections by more than 15%, and expects only a “modest improvement” in 2009.

Littleboy said that the EQ companies would not make a positive contribution to the group in the first six months of 2008, and KAE also expects to be down on the corresponding period last year.

The firm reassured investors that it still expects an improvement on 2007, has enough cash to fulfil its business plan, and continues to recommend a 3p dividend.

“We expect that the group will show increasing progress in the second half of the year and in 2009,” said Littleboy.

Author: Robert Bain

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