Scoot ditches expansion plans

LONDON - Online directory Scoot.com has abandoned plans to expand in Germany, Spain and Portugal, after reporting narrowed first-quarter losses of £9.5m.

The £9.5m loss was a reduction of 22% compared with a loss of £12.2m in the final quarter of 2000. Revenues rose to 8% to £9.6m and it expects to be cash-flow positive by the fourth quarter of 2002.



Dick Eykel, executive chairman of Scoot.com, said, "We are developing a number of initiatives that resulted from the strategic review that we began in the first half of 2001. As a result, our attention for the remainder of 2001 will be specifically on our existing markets and, in particular, in the UK." Scoot.com's other operations are in Belgium, France and the Netherlands.



Scoot also revealed plans to re-assess the value of its classified magazine Loot, which it bought last July for £180m. The company said that it is "assessing the need for an asset impairment charge" relating to the magazine.



A week ago, Scoot's shares lost two thirds of their value when chief executive Robert Bonnier resigned and the company said it would run out of cash by September unless it raised more cash from external sources.



This morning, shares opened at 3p, an increase of 9.1%.



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