P&P Plc shares went into free-fall yesterday as the company added to the computer sector’s unfortunate reputation for wrong-footing the market by announcing to the Stock Exchange that it is unlikely to make a profit in the second half of the year to November 30 so that profits for the full year will be substantially below current market expectations. It is making 60 people redundant, and blames manufacturers’ less favourable pricing policies and customers’ reduced capital spending programmes. The company will nevertheless maintain its final dividend unchanged from last year, but that was not enough to prevent the shares plunging 50.5 pence to land at 50.5 pence. Through no fault of its own, the company can now expect a rough ride from analysts, who don’t like to be made to look stupid two brokers issued bullish reports on P&P two weeks ago, tipping the company as a good recovery play.
