Lynx caught in profit trap

The Lynx Group has joined a group of computer services companies that have issued profit warnings due to a slow market recovery after the millennium.

The Lynx Group has joined a group of computer services companies that have issued profit warnings due to a slow market recovery after the millennium.

A group representative said expectations among brokers of between £14m and £15m profit before tax have been revised down to about £12m.

Richard Last, group chief executive, said significant performance for the quarter ending 31 September had been expected from distributor Sphinx CST and Lynx Technology. But he said: "Uncertainty over trading conditions can't be ignored when assessing final quarter prospects."

Demand for dealer management systems is low due to the poor state of the automotive market. Two subsidiaries, Lynx Automotive and Lynx Financial Systems Credit Finance and Debt Management, formerly Tenhill, were singled out as bad performers and face cost-cutting measures. The financial subsidiary will refocus on consultancy, said Last.

First published in Computer Reseller News