Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Internet advertising hopeful Phorm has seen full-year pre-tax losses widen 50 per cent to $48m and has yet to generate a cent from its behavioural advertising technology.
Advertising
The Aim-traded group saw sales and administrative expenses rise 46 per cent in the period to $42.2m, driven higher by an expensive publicity campaign defending its technology against privacy campaigners.
An equity placing earlier this month raised $24m, and savings have been made by cutting staff. Phorm's technology has been trialled by BT, but no announcements regarding a roll out have been made. It is also being trialled by South Korean internet service provider KT.
Analysts estimate that Phorm can survive for 20 months at current cash-burn levels so the race is on to generate income. The shares will undoubtedly re-rate if it pulls off a significant deal with an ISP, but the added challenge of convincing advertisers and publishers to buy in makes its shares a risky prospect. High enough at 470p.
LAST IC VIEW: High enough (440p, 16 May 2008)
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.10.5 running on www.investorschronicle.co.uk
