Non-regulated network Prestbury Holdings has issued its second profit warning of the year and has raised £500,000 through a placing of £1m of new convertible loan stock.
The company says the marketing joint ventures trialed by its Moneybrain division have failed to deliver the results that had been expected.
Prestbury chairman Francis Maude says: “Prestbury's half year and full year results will fall significantly short of market expectations.”
Durlacher analyst David Pannell says: “Neither of the two key components of Prestbury's business plan have worked as we expected. Recruitment for its Solution Network has been low and Moneybrain's joint ventures with third parties have not delivered the sales anticipated.”