Ailing London-based consultancy The Terence Chapman Group is looking for a merger partner or buyer as its core investment banking clients continue to rein in spending.
Shares in the company slumped 18% to a new year-low of 13 pence as the City digested the news. In June the company issued its second profits warning this year and announced a further round of job cuts in a bid to restore profitability.
However, the group says that market conditions remain difficult and the trading outlook continues to be uncertain. In a statement, the company adds: "The board has resolved to explore various alternative means of enhancing shareholder value, including a strategic merger or seeking an offer for the company".
In June, Terence Chapman's house broker reduced its revenue forecast to £9.3 million for the full year to August 2002, significantly down on the £32 million in revenues reported in 2001. The company is projecting a pre-tax loss for the year of £3.6 million.