TTP dives on loss warning

MOBILE phones technology specialist TTP Communications will suffer its first loss for almost a decade in first half results this year after its lucrative Asian business was hammered by the Sars virus.

Shares in the group tumbled 20p, or 24%, to 64 1/2p as it warned that operating losses in the six months to September would be at least £3m against profits of £4.9m a year ago.

TTP, which designs chips used in the Sharp GX10 Vodafone Live! handset advertised by David Beckham, generates half of its annual £50m of sales in the Far East.

Managing director Tony Milbourn said: 'For the first four or five months of this year we have not been able to meet the customer and that has put us back on closing the deals we want. We have offices in Singapore, Hong Kong, Taipei and Shanghai, and we did exactly what the World Health Organisation wanted us to do, not visit the regions they did not want us to visit.'

Up to 60 sub-contractors are being let go by the Cambridge-based company as it looks to save £2m over the coming months. 'We have to steer a very fine line on cost,' Milbourn said.

TTP floated three years ago. The shares hit a low of 27 1/2p 11 months ago.