Feeds

Scoot.com shares halve as it runs out of cash

CEO gone, CFO going

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Shares in Scoot.com - the UK online directory - have halved this morning following an announcement that the company is almost out of money (it won't last the next 12 months).

As part of a "strategic review", Scoot will cut 285 jobs, stop any expansion, "change" the way it charges customers ie. charge more, and sacked its CEO Robert Bonnier. CFO Ronald Dorjee is also out the door when they find a replacement.

Actually that's not true, Bonnier has "resigned" because of the "strategic shift" coming up and also, of course, for "personal reasons". Being shouted at is probably a good personal reason to leave.

The share price - already at its all-time low of 7p at one point dropped two-thirds to 2.25p but has now stabilised at 3.5p - a 50 per cent reduction. It's a far cry from the days of the Net boom when Scoot hit 351.5p briefly before rocketing down again to around 160p.

In the last few years, Scoot has seen its turnover rise but at the same time its losses keep pace and its debtors build. This year the company got a boost when major stakeholder Vivendi (22.4 per cent) said it was thinking of buying the company. It pulled out of the deal - presumably after it has a very, very close look at the company - and confidence in the online directory has plummeted since then.

The company is to take another look at its business model which earns a commission on customer referrals to particular companies. It still reckons it will break even this year. Rather than a commission it is looking at an up-front annual lump sum and no free trial services. It will also get rid of on-the-road sales staff and go for a telesales operation, cutting costs.

It is also looking at selling off part of its business, like Loot, in a bid to save itself.

The announcement makes a mockery of Scoot's attempts to deny that Merrill Lynch had been brought in to review the company's approach when it announced disappointing results in March. Today's news is the end result of that review. ®

Related Story

Scoot.com posts losses

5 things you didn’t know about cloud backup

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?