Tough trading hits Osprey in first half

TOUGH trading conditions in the UK led to a sharply lower first- half result at Osprey Communications, the advertising and marketing services group, writes Neil Thapar.

Taxable profits slumped from pounds 314,000 to pounds 90,000 for the six months to 30 November, on group turnover down from pounds 13m to pounds 11m.

Earnings per share fell from 1.47p to 0.43p, forcing the group to pass the half-time dividend.

Last year the company also passed its final dividend after slipping into a taxable loss of pounds 283,000 against a pounds 588,000 profit in the previous year.

However, Osprey shares edged up 0.5p to 11p yesterday, valuing the group at pounds 1.5m. The shares were trading at just 2.5p about a month ago.

The company said it had achieved 'rigorous' cost control but trading conditions were still 'extremely difficult' because of lower spending by advertisers.

Although the group has generated cash from operations during the period, interest charges jumped from pounds 171,000 to pounds 195,000.

The company said it had paid off a term loan but its estimated pounds 4m bank lending facilities remained almost fully committed.