Shares in Riva Group Plc, the UK suppler of IT, software, systems and services to retail sectors, crashed 26.5% to 23.5 pence after the company warned of a substantial fall in profits and plans to wind up its operations in Spain and Denmark. In 1998, Riva also dissolved its loss-making subsidiary in Switzerland (CI No 3,512) and directors say the latest retreat in Europe is unlikely to hit profits by more than 1m pounds. After a disappointing December, Riva expects pre-tax profits for the year to December 31 are unlikely to exceed 700,000 – 46% down on last year’s level. Chairman Peter Giles says the strategy of software-led sales to the retail in-store market remains intact and he is confident that the company will return to profit growth this year.
