WILink forces out small investors

IT'S all over for hundreds of small shareholders in WILink.com, the current incarnation of the former Knutsford shell group, which said it was forcing investors holding fewer than 250 shares to sell their stakes.

The company said it wanted to make its shares more attractive to institutional investors by consolidating its share capital. It is offering shareholders of every block of 250 shares one new WILink share at 250p. As part of the plan, residual holdings of fewer than 250 shares will be sold for cash.

It is a far cry from the heady days of 2000 when as Knutsford the shares soared to a 270p high after investors Nigel Wray, Nick Leslau, Julian Richer and Archie Norman took over the firm and pledged to make major retail acquisitions. The firm changed its plans and became a financial information provider, leaving its shares mired at just 1 3/4p.

WILink said losses for the year to 31 December rose to $42.5m from £4.3m, as write-downs and accelerated goodwill charges cost the group £42.6m. Sales rose 23% to £20.6m, but the firm warned the performance of its US operations was disappointing.