Redbus Interhouse slips on flat market

Shares in Redbus Interhouse slipped 18 per cent (2.75p) to 12.75p by lunch following the announcement that turnover was flat amid difficult market conditions.

Turnover for the third quarter skipped in at £2.31 million - down a smidgen on the £2.35 million from the previous quarter.

The company reported a loss of £1.24 million for Q3, on earnings before interest etc. (EBITDA) and excluding exceptional items. This compared with a loss of £1.2 million for the previous three months.

Said John Porter, Executive Chairman: "As expected, market conditions remained difficult during the third quarter with the result that turnover did not show progress over the previous three months."

Instead, the company intends to focus on sales and marketing activities in a bid make the most of the £44 million capital expenditure invested during the last nine months.

Redbus has data hostels in seven European cities and a third facility due to open in London by the end of the year. But tough trading conditions have meant that plans to open up facilities in Luxembourg and Munich have been put on ice, for the time being at least.

Redbus accepts that the market is tight and demand levels for co-location space has tailed off in some sectors and that there is likely to be little progress in the short term.

However, the outfit claims it is now experiencing a "significant level of enquires" from potential customers.

At the end of September Redbus had £39.7 million in cash. ®