GDC scraps share offer, lowers profit forecast

Telecommunications contractor GDC Communications' has downgraded its profit forecast after scrapping a share issue due to a lack of interest.

The directors said they were now looking at making some money through a sale.

"The directors are actively progressing business unit divestment initiatives and expect to make a further announcement on this next week," GDC said in a statement.

GDC had been seeking to raise up to $3.5 million through the lapsed 5c a share offer. They needed to reach a minimum of $1.5 million for the offer to take effect, but only received applications from shareholders seeking 22.8 million shares, or $579,000.

GDC said all money paid into the offer was being refunded.

GDC directors said they expect the financial results for the year to December 2005 to be "materially worse" than the more than $1.7 million loss they forecast back in November.

They said monthly operating losses had been incurred since November. They also intend to make abnormal write-offs of over $1 million, as well a tax credit write-off of $2.2 million.

Shares in GDC last traded yesterday at a record low 2c, having traded as high as 20.9c over the past 12 months.

- NZPA