IPT reports £1m loss after 'disappointing' 2007

by Staff Brand Republic 15-Apr-08, 11:25

LONDON - Interactive Prospect Targeting has reported a pre-tax loss of £1m for 2007 after what it described as a 'disappointing year', but says it has received another takeover approach.

The direct marketing and data company said that in spite of revenues rising from £24.1m in 2006 to £33.2m in 2007, profitability had been hit by technology problems at its UK operations and the continuing downturn in demand for postal direct marketing.

IPT also said that the loss of £1m, which compares to a profit of £4m in 2006, had been partly caused by foreign exchange movements.

However, Lionel Thain, the company's chief executive, claims that recovery is under way.

Thain said: "2007 was a challenging year for IPT Group. The group faced a number of technology related issues that were compounded by stiff competition in certain markets and a weakening of the broader economic conditions.

"However, the company's French operations, including its newly acquired companies, performed above expectations and the core UK business is undergoing a strategic realignment that will help recapture profitability in 2008."

Last August, IPT confirmed that it received a takeover approach. Today, the company said that while those talks have now ceased, a new approach had been made, which is under consideration by the board and may lead to an offer for the group.

The company's share price was unchanged in morning trading at 40.5p, down around two-thirds from its level a year ago.