Phonelink Plc, the UK-based information services company, believes its performance is about to be transformed now that it has assembled a group of profitable businesses and enviable internet and e-commerce opportunities.
In the six months through September 30, the company reported a net loss of 1.4m pounds ($2.2m), down from a loss of 1.7m pounds ($2.7m) on revenue up 82.8% at 6.3m pounds ($10.2m). For the year as a whole, brokers forecast the company will break into the black with a pre-tax profit of 190,000 pounds ($307,800).
But the shares responded to the announcement by slipping back 5% to 100.5 pence, since the company has a poor financial record and, for a modestly-sized outfit, its activities are remarkably broadly-based.
Phonelink is involved in internet travel sites, offering outsourced database management and consulting services, providing e-commerce systems to other companies and its traditional, though declining, online information services.
Some may see this divergence of activities as spreading the risk, others as a needless spread of management effort. But its past record makes this a relatively cheap stock in an over-inflated sector and sustained progress could transform its reputation. In any case, directors have decided on a quick make-over with a plan to change the name of the company to Tel-Me Group Plc next year.
