Guardian IT shares plunge in profit warning

Down and out this Christmas...

By Kate Hanaghan, 17 December 2001 10:55

NEWS IT services company Guardian IT has seen 58 per cent wiped from the value of its shares after reducing its sales forecast. By 09:46 (GMT) it was trading at 185.60p, a far cry from the beginning of 2001 when shares were going for over £10. The company expects sales for the end of the year to be between £113m and £115m. Profits before interest, taxes, depreciation and amortisation will be between £13m and £14m with net debt expected to be about £110m. During morning trading, the company saw as much as £180m erased from its market value. In a statement, the company said: "Conditions have worsened in the second half. The renewal rate of existing contracts has declined.''

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