Horizon shares tumble after profit warning

The share price of Irish technology form Horizon Technology tumbled today after the company issued a profit warning.

The share price of Irish technology form Horizon Technology tumbled today after the company issued a profit warning.

In Dublin this afternoon Horizon shares were on offer at 50 cents, a fall of 29 cents or 37 per cent on the day. The company said that the sluggish economic environment will mean earnings will be "significantly below market expectations".

Horizon expects revenues for the six months to December 2001 to be down almost 10 per cent on the corresponding period of the previous year and 15 per cent lower next year.

In the six months to December 2001, the fall in gross profit attributable to the lower sales volume is expected to exceed expense savings achieved and, as a result, the group does not expect to generate any material earnings before interest tax and depreciation allowances (EBITDA) in the six-month period.

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Horizon said its cashflow remained healthy and overall borrowings have fallen since June 2001.