Pipex, the UK's sixth largest internet service provider, announced a fall in profits yesterday but insisted that its strategic plans for the future were still on course.

The company's profits before tax, amortisation and share option costs dropped to £4.8 million last year, down from £5.1 million in 2005 as it was drained by a series of big takeovers including Bulldog, which was bought from Cable and Wireless in September.

Pipex put itself up for sale last month but its auction has been beset by problems, chiefly the pull-out of major internet service providers Carphone Warehouse and BSkyB, leaving the BT Group as the solitary bidder.

However, in a statement released to the stock exchange yesterday, it said: "The board notes that there has been a large volume of highly speculative press coverage and would like to reassure shareholders that the strategic review, which is expected to be completed during the summer, continues to the board's satisfaction."

Shares in Pipex fell sharply as a result of the announcement, dropping 0.25 pence or 1.89 per cent to 13 pence per share, giving the company a market value of around £315 million.




Tuesday, 17th April 2007

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