Research Now share price recovers after results release

LONDON - The release of interim results by Research Now, showing a growth in sales and a trebling of turnover, has helped lift its share price, despite the beleaguered market research firm announcing its second profit warning of the year earlier this week.

Shares in the firm cllosed on 260p on Friday after plummeting by a massive 187.5p to 225p on Wednesday. Shares are currently trading at 262.47, a rise of 0.95% since opening.

The latest results, for the six months to April 20 2007, show record sales in March and April, with a similar trend continuing into the second half of the year.

It has also been revealed that group turnover trebled to £9.9m from £3.5m in the first half of the previous year. Other highlights of the year included the acquisition of Canadian online fieldwork firm Open Venue.

Chris Havermann, chief executive of Research Now, said: "The market for online fieldwork continues to grow strongly in Europe, North America and Asia, and Research Now is well positioned to become one of the leading global players. I expect to see continued strong growth in the second half of this year and in 2008."

However, the results also reiterate that 2007 has been, on the whole, a torrid year for the AIM-listed firm, which was left devastated by the death of its finance manager Cathy Marlow in its London office in January.

The ensuing police investigation, which led to a man being charged with murder, resulted in the closure of the office and a move to a temporary, and now permanent, base also in London. The move is likely to slash full-year profits by £500,000.

In addition, around £600,000 of extra costs have been revealed mainly through buying access to internet panels in the US and Asia.