LONDON (ShareCast) - GoIndustry-DoveBid plunged Tuesday as it warned that 2008 profit will miss forecasts due to february’s DoveBid Inc acquisition and weaker than expected sales.

“Pursuant to a review of the company's performance in the first half and the expectations for the second half, the company's profit before tax for the year to 31 December 2008 will fall short of current market expectations,” warned the industrial machinery and equipment auctioneer.

“The shortfall in profits can principally be attributed to demands placed on the business by the transaction and a slower than expected improvement in the sales momentum of the combined entity.”

But the firm still expects to report a “substantial increase” in full year profits on 2007 in anticipation of a strong second half. It remains confident of another increase next year.

It is currently implementing strategic initiatives aimed at fuelling growth and improving operational efficiency.

Interim results are due for release on 16 September.

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