(Recasts, adds share price, background to offer talks)
LONDON (Thomson Financial) - TMN Group Plc. said it expects its full-year
pretax profit will be within 10 to 15 percent of management expectations
following a decline in demand at the email marketing planning and buying agency,
but added talks for a possible offer for the company continue.
The company said final-quarter revenues at EDR are now expected to be around
1.5 million pounds lower than previously expected following a fall in demand
from financial services clients, and that this has hit margins elsewhere at the
group.
"Despite this shortfall... EDR's revenue for the full year will still show a
healthy year on year growth," TMN said in a trading update. "The board remain
fully confident that the group is well positioned for the future."
It also said TMN Media and its research divisions have continued to trade
well and the acquired companies, Internet Business Group Plc. and Tapps NV., are
both performing in line with expectations.
Direct marketing company Tangent Communications Plc. pulled out of offer
talks with TMN on April 8 after making an offer valuing the group at some 50
pence per share in March. Since Tangent pulled out, shareholder Mike Danson has
significantly increased his stake in TMN to 19.2 percent.
Other parties believed to be in talks with TMN include 3i Group Plc., August
Private Equity and Trinity Mirror Plc.
At 9.00 a.m., shares in TMN were down 10.38 percent at 47.5 pence.
TFN.newsdesk@thomsonreuters.com
jro/ms1/vlb/jrr
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