GlobalNet shares hit record low

By THIS IS MONEY
Updated:

 

TROUBLED financial website operator GlobalNetFinancial.com, which runs UKinvest and Stock Academy, looks close to running out of cash after racking up first-quarter losses of more than seven times sales.

Finance director Richard Guest said the group was walking a financial 'tightrope' but had definitive plans to turn the business around should a hoped-for buyer fail to materialise. He said a swingeing cost-cutting programme is accelerating.

The London and Nasdaq former dotcom star saw its shares sink 2 1/2p to a record low of 6 3/4p after it lost $23.5m (£16.44m) in the quarter on sales of just $3.2m.

It had just $19m in cash remaining at the end of March, but that has been further reduced by an enforced payment of $3.5m to Dalton Kent, the broker it acquired last August in an all-share deal.

That settlement has been forced by the 97.7% collapse in GlobalNet's stock from last year's peak of 294 1/2p.

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