Protean shares plummet
Tuesday 17 September 1996
The shares fall wiped about pounds 40m off Protean's market value to pounds 70m following its warning that half-year profits to 30 September would be lower than current market expectations.
The company blamed management failures at DWA which compounded tougher trading conditions in the wake of German government spending cuts.
But Geoff Spink, managing director of Protean, said action was being taken to overcome the problem at DWA. A new managing director, Anita Sayer, had already replaced Armin Bechtel, the previous incumbent.
DWA, a water purification and renal dialysis business based near Heildelberg, was bought last year for pounds 12.9m. Protean said at the time that the deal was aimed at entering the German market and expanding sales of its existing products. In 1994, DWA made profits of about pounds 2m on sales of pounds 9m.
Mr Spink said: "We have essentially faced two problems. The first is that the German economy is facing cuts in public spending as a result of what Chancellor Kohl has called spending 'deferrals'. DWA is heavily dependent on government spending.
"The second problem is that our managing director was extremely good at strategic thinking but was unable to respond to the stimuli of what was happening to the economy."
In June, Protean reported a 37 per cent jump in full year pre-tax profits to pounds 10.3m.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price children are paying for Israel’s war with Hamas
Rotten-egg smell of farts could help battle heart disease and Alzheimer's
Online trolls target alleged rape victim Jada, by copying how she appeared in video of attack
Sustained immigration has not harmed Britons' employment, say government advisers
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
War is war: Why I stand with Israel
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...
£40000 per annum: Harrington Starr: Network Engineer (CCNA, CCNP, Linux, OSPF,...