Mporium warns on profits, announces fundraising and restructuring

The company said executive chairman Barry Moat had resigned with immediate effect, as it announced a major restructuring aimed at refocusing the business on its performance-led MporiumX division as a result of underperformance in its Agency division.

The AIM-listed company, which warned it would no longer be able to break even at the underlying earnings level in its current trading year, also said it had conditionally raised £1.5m, principally from existing investors, who paid 1p a share for new equity. This was a marked turnaround from a November fundraising which saw the group raise £2.3m by issuing shares at a premium of 5p per share.

Chief executive Neilius De Groot said: "The group has decided that it is necessary to narrow the focus of our business and to take the necessary steps to restructure accordingly.

"We are confident that under Tom's leadership, the restructured business will provide the Company with a solid foundation for future growth."

At 1000 BST, Mporium shares were down 35% at 0.96p.