Print management counter TripleArc has warned on profits for the year to December. Chief executive Jason Cromack says the figures will be ‘significantly’ below forecasts, with profits lower than last year – finance director Peter Houston is also on his way out. In April, when TripleArc announced very strong 2004 figures, Cromack flagged up a slower than expected start to the year from the print management division due to decline in the business forms market and slowdown in the retail sector. Since then demand has continued to dwindle and TripleArc has lost an expected large contract with a professional services organisation. The good news is performance at the rest of the group, including the recently acquired Stream business, has met expectations, contracts won in 2004 have bedded in and the pipeline, including a deal with a major financial services player, remains encouraging. Cromack says retail slowdown could even throw up opportunities in the second half, as beleaguered retailers look to outsource to combine cost cutting with a ramp up in marketing, and he is carrying out a restructuring of the group’s cost base. Nevertheless, analysts have downgraded 2005 profit forecasts from £5.1m to £2.6m, lowering forecast earnings from 1.9p to 1.2p a share. TripleArc rose to a 20.5p peak in November 2003 following our recommendation at 15.5p, then breached our 16.4p stop-loss. Readers who sold then will have saved themselves from recent pain. The shares are cheap, but given the problems at this outfit, they could go lower still. Best avoided for now.