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Adwalker sees sales slump and warns of financing trouble

Tuesday, September 30, 2008

Adwalker put out a warning today that lower than expected revenues in September combined with harsh economic conditions were having a severe impact on its finances.

It said that while it hoped to claw back lost revenues in the medium term, it was set to begin talks with a number of parties, including its bankers, with a view to securing the necessary working capital to meet its obligations.

It noted that if it could not improve revenues or secure additional financing there would be a material adverse effect on the company's financial position and operations.

The company said that near-term income growth through its Adwalker platform was heavily dependent on the advertising budgets of its global media partners. However, difficult economic conditions meant the company was unable to predict future revenues with any accuracy.

In August Adwalker posted its strongest set of results in three years with sales up 11% to €1.8 million and pre-tax losses down to €2.4 million from €3.2 million last year.






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