IPT spooks investors with profits warning

by Daniel Farey-Jones, Brand Republic 29-Mar-07, 15:25

LONDON - IPT's share price has dived almost 50% since Tuesday after the company warned investors its profits were likely to drop in the first half of 2007.

IPT attributed the expected profits hit to a weak market in the UK postal area, affecting sales in its postal business, and to its sales execution in the data business. It added that demand for its data remains strong and it remains confident for the rest of the year.

At the time of writing, IPT's share price was 103p compared with 200p before its results announcement on Tuesday. In the past year, the share price has been around 200p, moving no higher than 235p and no lower than 160p. It has been listed on the Alternative Investment Market since December 2004.

IPT's 2006 results were impressive, with an 82% rise in pre-tax profits to £4.4m and a 77% rise in revenues to £24.1m.

The company's aim for 2007 is to expand its core business and extend its range of operations in the UK and Europe. It made its first move on to the continent with the acquisition last May of French online direct marketing company Directinet.