AIT suspends shares as credit dries up

Trading in shares of cash-strapped customer relationship management outfit AIT has been suspended while the company tries to find a buyer to resolve its ongoing liquidity problems.

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AIT suspends shares as credit dries up

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With shares standing at an all-time low of £0.32 following two successive profit warnings, AIT directors say they now believe that the company's cash-flow crisis will only be resolved "upon completion of a sale on terms which allow the Group to discharge its liabilities".

AIT's fall from grace has been sudden and dramatic. Three 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. Two weeks later AIT's value halved again as the company postponed publication of its preliminary results after a routine audit uncovered further shortfalls in revenue. The company's net debt currently stands at £11.3 million, including a £700,000 loan from four AIT directors.

In a statement, the company says it is continuing to pursue the sale process "vigorously" with the assistance of UBS Warburg, and that it has received several further expressions of interest in the past week.

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