Sports Resource warns of loss

SPORTS entrepreneur Chris Akers has issued another profit warning for his marketing company Sports Resource Group, saying it would fall into the red this year amid a decline in trade for all its divisions.

The former Leeds United boss blamed poor performances from some of the golfers it manages and reduced activity in football's transfer market for many of its difficulties. Mergers in Europe's pay-TV industry and lower sponsorship expenditure were also contributing to its woes.

Analysts are now tipping a profit of about £150,000 before tax and amortisation for the six months to 30 June compared with £753,000 previously, and a full-year loss of about £200,000. The shares slumped 5 1/2p to 8 1/2p, valuing the company at only £5.5m.

Akers said the debt mountains that were engulfing British football clubs had led to a big fall in player transfers, from which Sports Resource got a cut. But he said at least two players listed with the group, including Chelsea's Eidur Gudjohnsen, may be sold in the near future, generating income for the company.

'Very few clubs are in the market unless they can balance the books,' he said. 'Some of our golfers have not played as well as we would have liked either.' Sports Resource manages golfers Darren Clark and Lee Westwood, among others.

The overall downturn in advertising expenditure had also hit profits from sponsorship and events management while the Latin American TV market had been soft and mergers in Europe's pay-TV market had put pressure on prices.

But Akers said the company was cashflow positive and its kitty would remain at £6.8m this year. Analysts believe this could be used to acquire some of its struggling rivals.