Six weeks later than expected, Salford, Manchester-based management consultancy Doctus Plc has confirmed previous profit warnings, reporting interim pre-tax earnings down 94% at UKP235,000 on sales that nudged up 13% to UKP74m. The poor results were accompanied with the news that the Wallace Group sales promotion business and Roevin Ltd, which supplies temporary staff to the oil, pharmaceutical and construction industries, are about to be sold to reduce debt levels – estimated to be around UKP30m – gearing rose to 177% at the year end. Doctus, which was reported to be doing so well back in September, with announcements of foreign ex pansion plans, blames the recession and the Gulf War for the cancellation of orders. The sale of Roevin will lead to a large reduction in Doctus’ interest in the Roevin Toco joint venture with the State of Tomsk in the Soviet Union. The disposals of the subsid iaries are expected to raise UKP20m, and will leave Doctus to focus on its core business of consultancy.
