St Ives issues another profit warning

Date: Tuesday 29 Aug 2006

Printer St Ives crashed to a new seven year low today as the group revised its profit expectations again, its third profit warning this year.

Group profits for the year to July will be about £2.8m lower than market expectations, though St Ives said its cash position remains unaffected.

The year end review revealed serious accounting errors in the Point-of-Sale division, explained St Ives, which resulted in costs not being properly expensed, an over-valuation of work-in-progress and unrecoverable debtors.

The financial controller of the Point-of-Sale division has now left the company with the group finance director now overseeing the production of the divisional accounts.

“Trading and margins in the second half of the financial year were in line with expectations,” added St Ives.

The company issued a profit warning in January that it was experiencing over-capacity and fiercely competitive pricing, adding in June that it had seen no improvement at all in the tough trading conditions.

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