Kode value halves on plunge to pounds 515,000 loss

KODE International, the computer services and electronics company, halved in value yesterday as it disclosed a pounds 515,000 interim loss, warned that it was cautious about prospects and passed its dividend, writes Heather Connon.

The group's shares plunged from 75p to 38p, valuing it at just pounds 3.57m. A year ago the shares were 195p and the group worth pounds 18.3m.

The pounds 515,000 pre-tax loss, which compares with a pounds 710,000 profit, in the six months to 1 July was due to DCM Services, the computer services division, where Kode had already warned that fierce competition was affecting performance. Computer companies such as Apple and ICL have entered the maintenance market themselves, sending prices plunging last year.

Stephen Day, chief executive, said that a new managing director and sales team had been appointed and there were 'one or two promising signs'.

Borrowings rose to pounds 3.1m, 80 per cent of net assets, from pounds 1.8m at end-1993. Loss per share is 5.5p (4.3p earnings).