Feeds

Compel share price halves

Profit warning sends stock tumbling by half

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Reseller group Compel saw its share price fall by nearly half yesterday thanks to a profit warning that looks like it will turn an expected 4 million profit into a 4 million loss.

According to today's Financial Times (FT), Compel's shares were the worst performing on the London Stock Exchange yesterday, dropping by 183p to 195.5p.

The fall values Compel at 61 million, prompting speculation that the group could now become a take-over target.

Compel has blamed a slow post-Y2K pick up in the first half of the year for its poor performance, which it said would mean year end results would "fall materially short" of expectations. Compel's year ends in June.

For the first six months of the year - ended December 31 1999 - Compel recorded pre-tax profit of 3 million on sales of 135 million.

The FT said there had been speculation among analysts that all was not well within Compel, and quoted one as saying: "For things to have turned round so quickly is astonishing. Something must have gone seriously wrong inside the company."

But back in February, Compel's interim profits slipped by 40 per cent, prompting the company to site a slowdown in sales. This was in spite of a 12 per cent increase in sales during the period. So perhaps no one should have been too surprised to find a problem as Compel approaches it year end.

Compel also lost Mark Howling, MD of its reseller and services company CompelSource. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.