Traffic management and field data systems operation, Peek Holdings Plc has reported interim results that are in line with previous warnings that it would report a loss for the six months to June 30 (CI No 3,144). Peek reported losses of 1.5m pounds before tax, while revenue slumped 22.1% to 55.7m pounds, and net losses hit 828,000 pounds. Peek’s present non-executive chairman David Walsh, who assumed the role after former chairman Ken Maud resigned in May after a fall out over the company’s future strategy (CI No 3,169), said the first half of the year has been a difficult trading period for the group. In June the company sold its Husky Computers Ltd business to WPI Inc (CI No 3,189). Problems relating to its traffic business, which the company says has been soft throughout the world, were partly caused by difficulties encountered in persuading the private sector to take over the funding of projects which had previously been predominantly financed by governments. Peek estimates that it has lost some 250,000 pounds in profits in the half owing to recent exchange rate fluctuations and the strength of the pound, and has recognized that its current levels of performance are unacceptable. In order to claw its way back to profitability, Walsh said the company will eliminate any activities where we cannot foresee satisfactory improvement. The rest of the year will see the company focusing on the traffic and measurement markets, where it believes there are good long term growth prospects. As if to emphasis its belief in a profitable future, Peek will pay a 0.4 pence interim dividend, compared to the 1.05 pence it paid at the same time last year.
