Shares in Adventis Group (LON:ATG) slumped by 19% to 12.5p during the morning after the media services group warned the full year profits could fall below market expectations by as much as 50% this year. After getting off to a slow start to 2010, hindered even further by the uncertainty of the general election, Adventis said that it healthcare business, whilst remaining fundamentally profitable, had experienced a considerable slowdown which has continued through the summer months. Elsewhere, the company’s media planning and buying businesses have continued to be impacted by campaign delays while activity in the property sector still remains at a low level. As a result, Adventis’s cost cutting programme is continuing.

On a brighter note, the company’s technology and telecoms division, which was expanded by the £0.7m acquisition of bChannels in February 2010, enjoyed a strong first half year, primarily due to the expanded services offering and the sharing of clients. Nevertheless, the company said that while the group was expected to recover some of the lost revenue in the second half of 2010, it was expecting the profit before tax, excluding exceptional items, for the full year to December 31 to be up to 50% below market expectations.

Last year Adventis posted a pre-tax profit of £1.3m and a gross profit of £10.8m on sales of £28.3m. Across its five core sectors Health generated 38% of gross profit, Media 25%, Technology and Telecoms 23%, Property 10% and Financial 4%.

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