|
|
|
04 Jun 2009
VAR Redstone has admitted that trading since December has been “slightly below expectations”, citing the challenging economy and delays in its efforts to cut costs.
The London-listed firm, which parted company with chief executive Martin Balaam in April, initiated a £7m cost-cutting programme in December after tumbling to a £1.8m pre-tax loss in its fiscal first half.
However, Redstone admitted in a trading update that its cost-reduction measures have taken longer to implement than anticipated.
Further reading
As a result, first-half trading for its current financial year is likely to be at a similar level to the previous six months, the VAR cautioned.
The communications specialist added that it expects to report adjusted EBITDA of between £7.5m and £8m for the year ended 31 March. Net debt is set to be about £26m as at 31 March.
Alan Coppin, who took on executive chairman duties following Balaam’s departure, said: “We, along with many other companies operating in our sector, have experienced weakness in overall trading conditions as a result of the current economic downturn.
“However, the board believes the actions it has taken – and is taking – will ensure the group continues to build on its strengths and that it is well positioned to take advantage of improved trading conditions as and when they arise.”
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
Dave discovers that rozzers are seemingly living in the technology dark ages
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Have your say