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Imagelinx

  • BY: Andrew Hore |
  • POSTED: 21/04/2011 |

Packaging graphics services provider Imagelinx says first quarter trading is ahead of the same time last year but the full year outcome will be hampered by the loss of Procter & Gamble as customer over the coming year.

P&G is cutting the number of suppliers it deals with. The P&G contract ends in June but there will be a period when the supply of services runs down. Even so, there will still be a shortfall in 2011 and a sharper decline in 2012.

The P&G business was expected to generate £4m in revenues in 2011 (around 30% of the group total) but much of this was unprofitable business and costs can be reduced following the loss of the contract. The full year impact on profitability could be up to £400,000.

Imagelinx also works for Colgate-Palmolive, Carlsberg and Diageo.

The 2011 profit forecast of £1m is unlikely to be cut by much. The 2012 profit forecast of £1.4m could be reduced by up to £400,000.

The shares fell 0.38p to 1p, which values Imagelinx at £2.89m. Even after the lost contract the 2012 prospective multiple could be less than four. 

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