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Title: Software Woes Start Bid Talks at Oxford
Source: Daily Mail Publication date: 2000-04-29
FORMER highflying IT and drugs group Oxford Molecular is in talks with potential bidders.
After a profit warning in February, yesterday it reported full- year pre-tax losses had deepened to 26m from 1m. Sales slid to 19.7m from 21.
Founded by Oxford don Tony Marchington, it has had trouble convincing drug companies to buy its software. The shares, 465p in 1997, are down to 28p valuing the business at 24m.
Chairman Douglas Brown admits performance 'was not tremendously good', but claims improvements are in the pipeline.
He blames the software division, where first-quarter sales remain 'disappointing'.
It has been restructured, axing 55 jobs, which cost 6.2m. Another 4.2m was lost on the sale of a stake in Cambridge Drug Discovery.
It is increasing borrowings by 3.5m and raising up to 1m from a placing at 25p to provide working capital.
Meanwhile, a herbal cure for mange will help Phytopharm earn its maiden profit next year. Losses halved to 852,000 in the six months to February.
The shares rose 18p to 440p.
Publication date: 2000-04-29 ) 2000, YellowBrix, Inc. http://realcities.yellowbrix.com/pages/realcities/Story.nsp?story_id=10246287&site=charlotte&ID=realcities&scategory=Computers%3AY2K
-- (Dee360Degree@aol.com), April 30, 2000