21 August 2014 – trading update
It is clearly disappointing that Tangent has produced a profit warning so soon after we have gone to press! Poor trading at its Tangent Snowball business means that group profits will be lower than previously expected with the year to February 2015 likely to see pre-tax profits at a similar level to last year. Tangent Snowball has suffered from budget cuts from two key clients and the divestment of the Australian operations – action has been taken to reduce the headcount at the business though and this is now a leaner and more agile business. Nevertheless, this is a short-term problem and not a sign of a business in trouble. Although disappointing, the medium to long term prospects remain sound and the fall in the share price means that the shares are still a BUY.