Wyndehams woes continued this week as its share price sank to a 52-week low of 119p after a second profits warning in six months.


The gloomy prognosis in Wyndehams AGM trading statement knocked 44.5p off its share price, which has been on the slide since Februarys warning when the shares were at 220p. The 52-week high is 295p.


The group said that first-quarter sales and profits in its commercial and magazine divisions "have increasingly fallen behind budget" and predicted that interim profits would be substantially below last years 6.9m if current market conditions continue.


"Analysts always expect more, but in this climate that wont happen," said chief executive Bryan Bedson. "70% of our work is publishing and publishers are feeling the draft at the moment. We arent losing magazines, but paginations are down and theres no sign of them going up. Its a cyclical thing and it will turn around, but it will take a while this time the trade has been in recession for nearly a year, I think."


Wyndehams low share price could make it a takeover target, but Bedson described speculation that Polestar could reverse into Wyndeham, thus gaining a stock market listing, as "kite flying", while one City insider said it was "a story invented by a stockbroker looking to create some interest in Wyndeham shares. It wouldnt be a cheap way for Polestar to gain a listing, and why would they want to take on more capacity?"


Wyndeham will complete the relocation of four of its commercial print businesses to a single site in Luton next month. 70 jobs have gone in the process. "If you cant get the margins youve got to reduce your overheads and create margin," Bedson added.


* Wyndeham has enlisted the publishing expertise of former IPC manufacturing director Peter Barber, who has joined the group as a non-executive director replacing Albert Gait, who has retired. "I hope I can bring something to the party," said Barber.


Story by Jo Francis