Adare shares crash after loss of Microsoft contract

SOME £6 million was wiped off the market capitalisation of printing group Adare on Wednesday following the loss of a major printing…

SOME £6 million was wiped off the market capitalisation of printing group Adare on Wednesday following the loss of a major printing contract from computer software group Microsoft.

The decision stems from a steady shift in user demand away from printed technical manuals towards electronic documentation. Adare will find it difficult to adjust to the loss of this major contract by its Mount Salus Press subsidiary. Adare purchased the then privately owned Mount Salus Press for £12 million last year. The benefits of the deal became apparent in Adare's latest results which showed a massive 413 per cent surge in pre-tax profits from £798,000 to just over £4 million. Also Adare, in a broadening of its business base has paid £23 million for British printing company Prontaprint which operates a chain of "instant print" franchised retail outlets. Brokers anticipate that current year profits will slip to around £9 million.