Plastics group corrects profit forecasts and details of investors

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The Independent Online

3DM Worldwide, the AIM-listed company which claims to have invented a plastic as strong as steel, issued a profits warning yesterday and admitted that the market had been misled over the size of the stake of its major shareholder.

3DM Worldwide, the AIM-listed company which claims to have invented a plastic as strong as steel, issued a profits warning yesterday and admitted that the market had been misled over the size of the stake of its major shareholder.

Shares in the company re-emerged from suspension and immediately soared by more than 20 per cent in value.

The company set out a string of clarifications of its recent statements, after an investigation by its advisers, overseen by regulators at the London Stock Exchange and the Financial Services Authority. Ken Brooks, the 3DM chairman, said: "The directors of 3DM take reporting and disclosure requirements seriously. We regret that it has taken some time to prepare this announcement, but we wanted to ensure that we had investigated all material matters."

The company's shares were suspended on 21 June after allegations of misleading statements, first publicised on the financial website t1ps.com, and growing confusion over the status of its leading product, a component for a DaimlerChrysler tipping truck. The stock halved in value as the controversy raged, but was back up 9.5p to 64.5p yesterday, valuing the company at £43m.

3DM admitted that Battlebridge - a Jersey-based company owned by a friend of Mr Brooks and providing premises and equipment to 3DM - had given up rights to one-quarter of its holding as collateral for a loan. The transfer must be declared under AIM rules, the company admitted, but it insisted it did not know of the transfer until 25 June.

Yesterday's statement also corrected last month's results statement that said the company received £5.4m cash after the year-end. The true figure is £2.9m. And it warned that market forecasts of £4.7m profit this year - published in a February investment note written by Thorold Mackie, a former City analyst, and paid for by the company - cannot be met on current expectations of royalties.

The Independent revealed last month 3DM's US licensing partner was warning of potential delays to sales of the tipping truck bed, something that was not mentioned in the company's bullish results statement a few days earlier. Mr Brooks denies misleading investors.

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