Feeds

Bright Station shares continue slide

That's what happens when you run out of cash

  • alert
  • submit to reddit

Build a business case: developing custom apps

Shares in Bright Station continued to slide this morning following its announcement yesterday that it was running out of cash.

Yesterday its share price dropped by a quarter to 15.25 pence wiping off £9 million from the value off the company. In early trading this morning shares fell a further 3.25 pence to 12 pence - around half what it was worth on Friday's close.

Bright Station's fall was prompted by an announcement that the e-commerce outfit is restructuring and looking for someone to bail it out.

Casualties of the overhaul include the disposal or closure of its ecommerce operations, Sparza and Officeshopper and Dan Wagner, CE of Bright Station, has already tabled his interest in acquire parts of these operations.

The company said it intends to run with its information management operation Smartlogik.

In a statement, the company said: "The Board has concluded that it is no longer feasible to continue its current rate of cash expenditure in support of all of its business initiatives notwithstanding their potential for value creation."

Its own figures show its been blowing around £3 million a month since the end of last year leaving it with a little over £4 million at the beginning of May. Unless additional funding is won it's on course to run out of cash by the summer.

Bright Station said it is currently negotiating a number of financing options. It had agreed staged funding, in principle, from Credit Suisse First Boston. However, this is dependent on a minimum market capitalisation of £30 million and the collapse of its share price looks likely to have scuppered that plan.

In March, Bright Station subsidiary, WebTop, axed more than 20 staff in a bid to cut costs. ®

Related Stories

WebTop sacks two thirds of workforce

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.