of Wyndeham – Profit warning issued due to Q3 2006 results
of Directors of Dagsbrun has
decided to open negotiations with potential buyers of a majority of the share capital
of Daybreak Acquisitions Ltd. the parent company of Wyndeham Press Group PLC,
the third largest print and communications company in the UK.
Dagsbrun has hired Landsbanki Corporate Finance to assist the
company with the
sale, but in light
of changes in the operating environment of the print industry
in the UK, due to increased
competition and consolidation
of companies in this field, it is expected
that the forecast presented at the time of acquisition
will not hold for the year 2006. The Board considers it prudent to record
a 1,5 billion ISK impairment
provision due to the company’s
shareholding in Wyndeham.
be pointed out that in the
Schedule of Division and Merger of Dagsbrún from 12 September 2006, an amorisation
of good will amounting to 1 billion ISK was recorded following an impairment test of the company’s shares in Kögun hf. Furthermore, one-off costs due to
the division and reorganisation of the company have been
recorded in Q3. Finally, the results of 365 miðlar ehf. have
not been in line with the presented forecast
for the first nine months of the year.
Þórdís Sigurðardóttir, the Chairman of the Board, however
says that the prospects of the electronic communications and media segments of Dagsbrun are good. Selling part of the company’s shares
in Wyndeham would alleviate the Group’s
indebtedness and provide
for a sharper focus in its operations. The company thus
aims to sell
all shares in Wyndeham in the next 24 months.