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Property search business PSG Solutions reported lower interim profits and the second half will be even worse.
Pre-tax profit fell from £1.48m to £1.29m in the six months to September 2008. Revenues declined from £6.77m to £6.21m.
House broker FinnCap forecasts full year profits of £1.5m, against a reported profit of £3.24m last year. That is because the housing market is continuing to weaken.
Shares in PSG fell 10p to 22p each, which values the company at £5.62m. Net cash is £3.15m.
The mix of interim profits has changed. The contribution from the core business has halved from £1.56m to £775,000 as housing transactions also halved. PSG has already built up its Home Information Packs business but it still does not have the same market share as it does for property search.
The launch of HIPs has moved the company’s customer base from solicitors to estate agents, where there is more competition. Prices for the search business have been hit. PSG Energy, an energy assessment business, has been launched.
Financial services profits were flat but specialist packaging company Moore & Buckle’s contribution halved to £110,000.
Audiotel returned to profit. The surveillance equipment supplier moved from a loss of £45,000 to a profit of £469,000 on revenues that more than doubled from £608,000 to £1.45m. Audiotel was profitable in the second half of last year so this rate of improvement won’t continue.
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