Chapman crunch as orders fall

By THIS IS MONEY
Updated:

 

SHARES in financial software consultancy Terence Chapman dived as it warned that profits for the second half of the year to August would fall 'substantially short of current market expectations' and said it planned to cut around 10% of its workforce of 230.

Chapman shares slumped 21 1/2p to an all-time low of 41p. They were floated by ABN Amro at 135p two years ago and soared to a high of 667 1/2p early last year.

Founder Terry Chapman still holds a 25% stake, which at its peak was valued at more than £165m and today is worth around £6m. He collected £4m when he sold shares in the float.

Finance director Michael Le Houx said: 'We have got to take a small step backwards to regroup. Since our last statement, our major customers - the banks - have started laying people off in droves and stopped ordering. We remain strong with £20m in the bank.'

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