We can make money… honest – Scoot
As long as we don't run out of it in the meantime
Scoot has announced its quarterly results, showing a £24.3 million loss but with sales up £700,000 to £9.6 million. However, the loss per share was down, prompting the company to assure people it can become profitable by the end of next year.
The only problem with this scenario is that unless someone pumps some money into the company soon, it will simply run out of cash and have to cease trading. Just over a week ago, when Merrill Lynch had completed a report into the company, it announced that it barely had enough money to survive.
Then CEO Robert Bonnier "resigned" and CFO Ronald Dorjee said he would leave as soon as a replacement was found. Scoot's share price halved.
The company, now under new man Dick Eykel, is restructuring itself. It will no longer give free trials of its online directory service and it'll ask for an up-front annual fee for companies wanting to be included in its directory.
What hasn't been mentioned, however, is Scoot's sloppy customer management - the essential aspect to its business. We have had several people contact us to say that they took up the free trial service for their business but when they tried to formalise it (note this is where Scoot gets the money) it has proved so difficult to achieve that all but one decided not to bother. ®