Sports marketing and management group Essentially Ltd says that its 2008 figures will be worse than expected.
Essentially blames the weak economy for delays in key sponsorship contracts. Negotiations are tougher and prices for the sponsorship rights are not as buoyant as they were previously. The athlete management division is trading in line with expectations.
Management insists that revenue visibility for 2009 remains good.
One bright spot is that the reduction in earnings means that deferred consideration payable for past acquisition is likely to fall from £5.7m to £2.9m according to Edison Investment Research.
Edison expects year end net debt will be £4m, against its original expectation of £3m.
The shares fell 1.25p to 5.75p each, which values Essentially at £11.3m. The shares are trading on six times forecast earnings per share for 2008.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.