Matrix issues profit warning
Reseller group prepares to announce year-end results next week
Matrix Communication Group has seen its share price slump after warning of reduced pre-tax profits when it announces its end-of-year results next Tuesday.
A statement to the city, said: "The Board estimates that the deferment of revenue recognition in accordance with its accounting policies together with certain additional cost accruals will reduce pre-tax profits, before amortisation of goodwill and exceptional costs (for restructuring during the financial year and the impairment of goodwill arising on the disposal of Equip announced on 2 February 2006) in the year ended 31 October 2005 by around £1m relative to the current market consensus forecasts."
Share prices have fallen from 145.5pps on 13 January to 118.5pps on 7 February, before dipping further to 95.5pps at time of publication.
Matrix claimed changes were afoot in the business as it moves from being "a product-based distribution and reseller business, to becoming a focused solutions and services provider in the converged telecoms and IT services sector ".