News blog
Electric Word
- BY: Andrew Hore |
- POSTED: 18/10/2011 |
Information publisher Electric Word says that sales of its education information products were weaker than expected in the third quarter and it has not got any better in the fourth quarter.
The fourth quarter is key to the full year outcome and the professional division’s profit is likely to be one-third of the £1m reported in 2009-10. That means that group profit will be below expectations.
Shares in Electric Word slumped 0.75p to 2.12p each, which values the company at £5.84m.
Revenues fell 6% to £7.71m in the six months to May 2011. The business information division made an improved profit contribution but the professional parts of the business made sharply reduced profits and the consumer side increased its loss. There was a positive contribution from the new health information publishing business.
Electric Word has been hit by lower spending by schools and it has also increased its marketing spending. There have been cuts in delegate numbers for education conferences.
There will be one-off costs for restructuring the Incentive Plus catalogue retail business.
Management believes that the professional division should recover in 2011-12, helped by new products.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2011_25.pdf
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