PracticeConsultingSherwood stock falls 60% in two days

Sherwood stock falls 60% in two days

Shares in e-business, insurance and management software developer Sherwood International have lost almost two-thirds of their value, following a trading warning issued yesterday.

Sherwood said trading during the first months of 2001 had been ‘difficult’ and this had continued through to the second quarter of the year.

A general slowdown in the software and services sector had affected the company, slowing down the number of sales being made, resulting in clients delaying on making buying decisions.

And it warned that the ‘full year 2001 result will be dependent on market conditions, the timing of sales conversions and the attendant services revenue stream’.

The collapse in the share price has reduced the value of the company to just £48.7m, almost £100m less than its market capitalisation when it listed in 1995. In February the company stock climbed to 500p, given the company a value of £223m, but has fallen steadily ever since.

Finance director, Richard Brooman, said ‘I think the world had half-expected everything to come screaming back with a rush That did not happen.’

Sherwood delivered a healthy set of annual results for last year, making a pre-tax profit of £6.63m, but is only expecting to make a small profit for the six months till 30 June.

Its implementation partners include Ernst & Young Cap Gemini and Deloitte & Touche consulting.

Shares in Sherwood were last trading at 107p.

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