Bonhill shares tumble as it warns on profits
Shares in business-to-business media firm Bonhill Group tumbled on Wednesday after it warned that its 2019 results "will not reach the levels previously anticipated".
Bonhill said full-year revenues would be flat due to "challenging" conditions in the UK and Hong Kong, while earnings before interest, tax, depreciation and amortisation for the year looked set to be me "materially" below expectations at £2.5m following "significant" investments.
The AIM-listed group said a difficult macroeconomic environment and turbulent trading had hit Last Word Media, which it bought back in April. As a result, a cost reduction exercise was undertaken which will realise around £1m of the group's overall £1.5m in cost savings identified for 2020.
Bonhill said the performance of Investment News improved in the second half, leaving the board confident going into 2020.
Chief executive Simon Stilwell said: "The business has had a difficult 2019, which has continued into the final quarter.
"However the new technology platform and the calibre of the people we have recruited combined with the underlying work in improving our offering puts the group in a stronger position."
As of 1100 GMT, Bonhill shares had tumbled 32.71% to 36p.