Legend takeover talks result due soon
Might happen, might not...
Legend Communications is due to make an announcement about a possible take-over "in the near future", the Lancaster-based ISP and VoIP outfit said today.
Two months ago Legend confirmed it was "engaged in preliminary talks, which may or may not lead to an offer being made for the company". Although it is still remaining tight-lipped about possible suitors, both Pipex and Scottish telco Thus have been linked to the company.
News that the ISP might have managed to flog itself comes as Legend reported diving into the red despite a sizeable increase in revenue.
For the six months to September turnover increased by 38 per cent to £9.4m compared to H1 2004. But the ISP turned a profit of £103,000 in H1 2004 into a pre-tax loss £1.66m this year.
The last four or five months have proved tricky for Legend. In August it issued a trading statement warning of a "downturn in trading" caused by tough competition in the broadband sector. It also warned investors it had been hit by two bad debts totalling some £200,000.
As a result Legend shed 57 staff helping to save £120,000 a month while all executive directors took voluntary pay cuts. ®