Networking distributor Ilion has issued a profit warning, blaming poor UK sales for not meeting its expected pre-tax targets of #8 million.
In the first four months of 1998 UK sales grew by just 22 per cent, the company said but in France the distributor recorded a 70 per cent growth in sales. Other markets such as Germany, Belgium and Spain have also fallen short on expectations, but it is in the UK that Ilion has been hit the hardest.
The improved performance of the French subsidiary was not enough to make up for the UK shortfall and consequently the company's share price dived by 74p to 114p earlier today.
Ilion chairman Wayne Channon said in a prepared statement today that he was "very disappointed" with the warning and played on the volatility of the UK market.
"The market has been exceptionally unpredictable in the UK this year as I indicated in March," he added. "I am confident in the strategy of retaining our market leadership in the UK and we will ensure that the required actions are taken to protect this position, albeit at the expense of short term profitability."
In March, Ilion reported a slight rise in profits for 1997 to #6.1 million, on a revenue increase of 38 per cent.
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