News

Imagelinx slumps on 'disappointing' figures

16 March 2007 15:32:00

Graphic brand management services provider Imagelinx suffered hefty declines today after describing the group's financial performance as "disappointing".

The group was able to announce an increase in pre-tax profit of £7.2m compared to a loss of £1.3m in 2005, but admitted that the rise is largely attributable to the profit on disposal of the LTG Mailaender Division.

Turnover fell to £24.8m compared with £52.2m last year as it no longer received the revenues of its LTG Mailaender division.

The group said the loss of former client Duracell early in the year as well as the need to reduce prices for another client was the main causes of its difficulties.

"Much has changed within the organisation to deliver the performance that is required of it. There have been two transforming transactions in 2006, the sale of the LTG Mailaender metal sheet decorating division and the purchase of Tecnolink Ltd," the group said.

"This disposal radically changed our group balance sheet as the division was not only heavily indebted but also had substantial net liabilities. Lastly it has enabled the management team to focus on the Imagelinx business," it added.

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