Kewill sounds new profits warning

TROUBLED software and computer group Kewill Systems issued yet another profits warning today after being hit by particularly difficult trading conditions in the US and by restructuring costs.

The Surrey-based group expects to make a 'material operating loss' for the six months ending in September. Its shares plunged to a new low of 15 1/2p, down 3 1/4p, a fall of 17%. In the spring of 2000 the shares reached a high of 3112p.

The group had predicted that its second half, ending in March 2003, would be better, but the poor first-half performance will hit full year figures. This will lead to further losses.

Trading conditions in the IT sector were described by the group as 'very uncertain, particularly in the US'. A series of disposals, including its ERP subsidiary, will leave Kewill with £18m in cash by the end of next month.

In July, Kewill hired Paul Nichols from Logica as its new chief executive. He replaced Bob Malley, who is off to the US to start a new venture, though he will remain as a consultant for the next 18 months.