OneMonday and Zoo warn of profits slide

Zoo Digital and OneMonday Group both blamed poor market conditions in the technology sector for their profit warnings.

Zoo Digital, which provides 3D website technology, said that due to a recent slowdown in demand, revenues are running about £1m below budget. Consequently, the loss for the year ended 31 December "is likely to be correspondingly higher than market expectations" and an unspecified number of redundancies will follow. Analysts had expected a pre-tax loss of about £2.4m.

Zoo Digital said it has a "strong" cash position, but the company's shares closed down 1.5p at 4.75p.

Separately, OneMonday, which provides PR services to the technology sector, warned that it "expects interim results for [the] period up to 31 January 2002 to reflect continuing difficult market conditions". However, it was confident that the second half of 2002 will be "substantially stronger", leading to a satisfactory outcome for the year.

For the year ended 31 July 2001, OneMonday reported a pre-tax profit of £329,000, down from £2.3m the previous year.