AIT for sale as audit uncovers further shortfalls

AIT for sale as audit uncovers further shortfalls

UK customer relationship management vendor AIT has postponed publication of its preliminary results and put itself up for sale after uncovering further unexpected shortfalls in revenues and profit.

In early-morning trading AIT shares lost more than half their value, sinking to £0.47. Two weeks ago the company had four fifths of its stock market value erased after warning investors that it was running out of cash and would not meet projected revenue targets.

The decision to delay the preliminary results statement follows the company's annual audit which has raised further accounting uncertainties. Problems raised in the audit include a £2.5 million license agreement with a channel partner and the sale of another license to Rossbank, the CRM outsourcer in which AIT has a 20% stake, which cannot be recognised as revenue for the results period.

The overall negative effect is expected to be approximately £4 million on revenues and approximately £4.3 million on profit and is incremental to the revenue and profit shortfall of £1.1 million announced at the end of May. The net debt position remains unchanged at £11.3 million.

In a closing statement, the company says: "The board is now actively pursuing a sale of the company and has already received a number of expressions of interest."

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