Fran Rooney, chief executive of beleaguered Baltimore Technologies, has resigned. City pundits ar...
Fran Rooney, chief executive of beleaguered Baltimore Technologies, has resigned. City pundits are already suggesting the decision pre-empts an imminent rights issue from the beleaguered internet security business.
It doesn't take Sherlock Holmes to see why either. The Irish business is thought to have a cash burn rate of around £100m a year but had only just over half that amount at the end of last month. Couple this with the group's warning last week that revenues for the quarter ended June 30 had slumped to £15.5m from £23.7m in the previous quarter and any assumption that it's in dire need for a cash boost is elementary.
If a right issue is to succeed Rooney's departure looks to have eased the way. The market has already reacted well to news of the resignation by sending the stock 25% higher by midday, up 4.5p to 23.5p. This share surge also staves off Baltimore's ignominious pleasure of joining the 99% Club - the growing membership of businesses to have lost 99% of their share value.
Even so, the prospect of a successful Baltimore rights issue isn't exactly rosy. Bare in mind last week's confession that 'significant' job losses are on the horizon, not to mention May's announcement of 250 redundancies.
The group's share performance this year has been pretty disastrous too. Baltimore tops the FTSE 250 and TechMark 100 losers tables for the year so far. Furthermore, only Redstone Telecom, Recognition Systems and Scoot.com are ruing over worse performances so far this year among the 247 strong membership of the TechMark All Share index.
Finance Director Paul Sanders will act as interim chief executive until the firm finds a permanent successor to Rooney.
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