Sports Resource announced to the stock market: "Due to the absence of a recovery in its core markets in the second quarter of 2002 and increased operating costs from investment in new areas of business, which the board believes will generate long-term growth opportunities, operating profits for the first half of the year will be below those of the prior year.
"Assuming a continuation of these conditions during the remainder of the year, the Group's expectations are for the full-year operating result, before amortisation of goodwill, to be between a small operating loss and break-even."
The group, headed by ex-Leeds United plc chairman Chris Akers, said it continued to generate a positive operating cash flow in the first half of the year, despite the difficult trading conditions, finishing the period with a net cash position of approximately £6.8million (EUR10.6m/$10.47m), after an acquisition-related spend of around £1m (EUR1.56m/$1.54m) in that period.
Shares in the London based-firm, whose clients include UK Athletics, fell to 8.5p.They peaked at 190p last year.
