Group Press Releases
Write Down of Investment in Newworld IQ
05 June 2003
Write Down of Investment in NewworldIQ (“NWIQ”)
The Board of Aegis has received a revised forecast of the revenues and anticipated funding requirements for NWIQ, an investment originally made by eVerger, the Group’s internet investment joint venture with Warburg Pincus. The new forecasts show a significant deterioration in anticipated revenues and increases in expected losses and funding requirements.
In the light of these new forecasts, Aegis has informed the board of NewworldIQ of its decision not to provide further funding. It is likely, therefore, that the investment which amounts to US$18.1 million in the books of Aegis, will be substantially or entirely written off against profits for the six months ended 30 June 2003, although there will be no associated outflow of cash.
The remaining book value of the Group’s investment in eVerger after all provisions and write-downs, would be US$2.5 million. This is represented by a holding in Dynamic Logic Inc which is trading profitably.
As reported at the AGM in May, overall trading for the Group is in line with the board’s expectations.
For further information contact:
Richard Walters
Aegis Group plc
+44 (0) 20 7070 7700
Charles Palmer
Financial Dynamics
+44 (0) 20 7831 3113
