Wednesday, 17 September 2008

More problems for Anite

Whilst Anite's management wait for confirmation that the sale of their Public Sector busines to Northgate will go ahead, they have confirmed that they are having to cope with the receivership of one of the major customers in their travel division, XL.

Not a major problem says RBS in an investment note - "Management contact confirms that there are no significant outstanding balances owed by XL Leisure and on a run-rate basis it generates about £300,000 of annual profit for Anite". RBS adds "We see £300,000 as manageable in the context of the division which has about £34 million of annual revenues and profits of about £8.6million".

But I'm not convinced that Anite can replace the XL revenue nor shed all of the costs related to it......

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