Analyst Roddy Davidson at Altium Securities has cut his 2009 profit forecast for business publisher Centaur from £11.3m to £4.7m after it announced on Friday that recruitment advertising revenues were down 66 per cent.
Davidson said: ‘The company is in an awkward position. They are managing the business in a responsive and proactive way but the market seems to be falling off at such a pace that it is having a very pronounced impact on profitability.
‘You can obviously reduce cost to protect margins but you can’t do that indefinitely without cutting into the muscle of the business.”
Centaur shares dropped 30 per cent to 23.75p on Friday following the profit warning.