Aegis originally invested in NewWorldIQ, based in Saratoga, California, in 2000 through eVerger, the e-marketing investment firm it formed with investment bank Warburg Pincus.
However, the US firm has forecast a significant deterioration in anticipated revenues and increases in expected losses and funding requirements.
In the light of these new forecasts, Aegis has informed the board of NewWorldIQ of its decision not to provide further funding, effectively cutting off the US firm.
Aegis said it was likely that the investment will be substantially or entirely written off against profits for the six months ended June 30 2003, although there will be no associated outflow of cash.
The remaining book value of the group's investment in eVerger, after all provisions and write-downs, will be £1.5m represented by a holding in Dynamic Logic, which is trading profitably.
Aegis said that, as reported at its AGM in May, overall trading for the group is in line with the board's expectations.
NewWorldIQ's core products, IncentiveIQ and ±±¾©Èü³µpk10IQ 2.0, are enterprise marketing software offerings that support a number of marketing communications needs. The two products are designed to help marketers plan, execute and measure interactive programs to build customer loyalty, simplify customer lifecycle management and maximise return on investment.
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