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Digital Animations

Companies: DAG   
12/11/1999

With various contract failures under its belt and losses mounting at an alarming rate, it's little wonder that this Aim-listed venture has run into 'short term' cash flow difficulties. Just how 'short term' though is difficult to tell, although the board are sufficiently alarmed to ask for the shares to be suspended whilst they 'manage' the situation. One option they are considering is selling the entire company. The problems this time round relate to negotiations the board were undertaking for Digital's first animated television series with a US cable network. The group had invested 'considerable amounts' gearing up for the series, but it all seems to have unravelled after management were unable to raise the necessary finance to meet the terms of the contract offered to them. Losses at the interim period increased from £47,756 to £491,182 and turnover almost halved to £334,899. As with the shares, investors are now in a state of suspended animation.

Market cap: £11.6m
PE Average: 59
PE Forecast: n/a
PE Historic: n/a
Share price: 75.5p

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