23rd Sep 2013 07:54
LONDON (Alliance News) - Savile Group PLC Monday said it was seeking new funding and moving immediately to cut costs as its main business was hit by a big downturn in demand over the summer that hasn't improved much this month.
It said it had traded profitably in the second half of its last financial year after trading improved, but the first quarter of the current financial year has seen a significant downturn in expected activity in Fairplace, its corporate transition business which represents around 70% of sales.
In a trading update, the company said Fairplace had experienced an unusually quiet July and August, while the expected pick up in September after the summer break has been both slower and delayed, meaning it will incur a significant loss in these months.
It said the lower sales and losses had hit its cash reserves and it is therefore looking at ways of getting additional funding. In the meantime, it will take immediate steps to cut costs.
The shares were down 47.7% at 6.02 pence early Monday, the biggest decline on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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