Thus issues gloomy profit forecast, but will remain cash positive

27 Sep 2004

Shares in alternative service provider Thus Group fell by more than 25% on Friday after the Glasgow-based company warned EBITDA returns for its fiscal first half to 30 September 2004 would be below 2003 levels due to the effects of aggressive pricing in the corporate telecoms sector by rivals such as COLT Telecom, MCI and Cable & Wireless. Thus said that despite the intense competition and pressure on margins, it expects to report a positive cashflow for the period, and an increase on the GBP157.5 million turnover registered in the first half of 2003. For the full year to 31 March 2005 the telco is forecasting total revenues and EBITDA of GBP360 million and GBP39 million respectively, compared to GBP332.4 million and GBP43.6 million in the last full financial year.

United Kingdom