STOCK WATCH

Warning causes Nortel stock drop

Nortel's shares fell 12 per cent to a 52-week low on the warning that revenue growth will be lower than expected for both the quarter and the year. The company, which is due to be merged with Bay, insisted earnings were on target and predicted that revenue growth would be in double digits.

Bertelsmann

Bertelsmann, the German media group, has sold one million shares in internet service provider America Online to help finance its own expansion plans. Bertelsmann, which is a joint venture partner in some of AOL's international operation, owns a further 4.4 million AOL shares.

Amstrad

Amstrad has reported pre-tax loss of #1.1 million for the year ended 30 June, compared with pre-tax profit of #1.7 million last year. The company's turnover increased to #53.3 million from #43.1 million for the comparable period. Restructuring and relocation costs led to an exceptional charge of #900,000.

MR Group

MR Group has increased its turnover by nearly 20 per cent from #39.4 million to #46.8 million. The group's pre-tax profit jumped 13 per cent to #6.3 million.

Prodigy files for initial public offering

Online service provider Prodigy Communications has filed a motion at the US Securities and Exchange Commission to raise up to $86.3 million in an initial public offering (IPO). The underwriters for the IPO are Bear, Stearns & Co.

Unify

Unify will repurchase up to 500,000 of its outstanding shares through a stock repurchase programme. The shares represent about six per cent of 8,437,296 oustanding shares.

JSB

JSB, developer of networking and connectivity products, has achieved a turnover of #3.3 million for the year ended 31 May, stable with last year's figure of #3.4 million. Its pre-tax profit was #6 million, compared to #53,000 loss last year.