(Explains details of negative impact, adds 2009 outlook, share movement)
LONDON (Thomson Financial) - Independent Intl Investment Research PLC
cautioned that its full-year results will likely fall below current market
expectations hurt by the weakening US dollar, merger and acquisition activities,
unbudgeted costs from legal expenses and delistings in the US.
However, the UK financial research company said it expects second half
results to be broadly in line with results from the first half.
In the light of product opportunities and associated overhead costs, the
company said it has decided to withdraw from sales of equity investment research
into China, until that market has expanded and matured.
Moreover, the company said the launch of its new product pipeline is behind
schedule, and hence, all associated revenues have been eliminated from current
year revenue forecasts.
At 8.40 am, the company's shares slumped nearly 39 pct to trade at 16 pence.
Regarding equity delistings in the US in response to Sarbanes-Oxley, the
company said this has stopped research coverage which was previously purchased
by its clients and this had a significant impact on revenues over the course of
the full-year.
The additional unbudgeted cost impact arises from legal expenses related to
the company's dispute with Google.
Looking ahead at the year to end-February 2009, the company said investment
in its most significant product development this year is expected to positively
impact revenues next year.
It added that global IPO activity is expected to have a positive impact on
revenues through its GEO Monitor product, along with two additional product
launches in December or January.
The company also noted that its non-executive director Malcolm Donaldson has
stepped down as non-executive director with effect from Nov 30.
TFN.newsdesk@thomson.com
pmi/rfw/pmi/rfw
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