Two small companies are substantially smaller this morning after shocking investors with poor trading new
ArmourGroup, which provides security services around the world, slumped 47% to 26.25p valuing the company at around £15m. The company said its profits would not match last year's $10.6m and that chief executive David Seaton was stepping down immediately. It blamed part of its woes on the situation in Iraq, saying the award of contracts in the country had been affected by the Blackwater incident in Baghdad in September when 17 Iraqis were killed.
Also falling sharply was Patientline, which provides telephone services for hospital patients. The company warned on revenues in September, and today it said half year losses had jumped from £3.7m to £11.2m after exceptional charges. It is talking to its banks about its level of debt and a restructuring. But it warned: "Shareholders should note it is uncertain as to whether any value will be attributable to the ordinary shares in the restructuring." Its shares lost 40% to 0.65p.
