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News > International
E-commerce hits ICM
June 23, 2000: 6:50 a.m. ET

UK computer consultant warns on profit growth; shares slump 20%
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LONDON (CNNfn) - British technology consultant ICM Computer Group PLC warned that its profit growth was slowing as clients weighed up the impact of expanding demand for e-commerce services, delaying decisions on the support services that ICM provides.

The profit warning was the latest in a line of cautionary statements from the U.K. computer sector. Many technology firms are already suffering a hangover from heavy spending on Y2K issues at the end of last year.

ICM (ICM) shares were down 20 percent at 435 pence on Friday morning, after dropping as low as 382 pence following the announcement. The stock is down two-thirds from its peak for this year.

ICM also cited deteriorating trading conditions after the loss of three government contracts. While it said it expected operating profit and net earnings are to grow in the year ending June 30, the increase would be less than analysts had forecast.

graphic"Due to a combination of the factors above and our accelerated investment in e-commerce implementation and business continuity, such growth in profits is expected to fall short of current market expectations," it said in a statement.

ICM's warning followed a downbeat statement from Computacenter PLC (CCC) earlier this month. Other firms in the sector, including Compel PLC (CGR) and Gresham Computing PLC (GHT) have also warned of poor results. Back to top

-- from staff and wire reports

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