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Thursday, 4 October, 2001, 10:21 GMT 11:21 UK
Durlacher plunges into loss
Durlacher share price
The internet incubator and broker Durlacher has reported a big loss, as the company suffers from the market downturn and the collapse in value of technology stocks.

It made a pre-tax loss of 44.9m against a profit of 12.3m last year.

Turnover fell more than 50% to 12.7m, and the company said it would not be paying a dividend.

Durlacher was one of the stars of the dot.com boom, but its share price has now sunk more than 99% since its peak.

Earlier this year it warned that it was expecting to make a "substantial" loss for the year.

Rise and fall

The story of Durlacher reflects the rise and fall of technology stocks over the past few years.

During 1999 its share price rose 6,000%, and at its peak the shares were worth 441p valuing the company at more than 2bn.

But the price collapsed when the tech bubble burst and by close of trade on Wednesday its shares were worth less than 3p.

Durlacher invested in internet start-up companies, hoping to benefit when these firms were floated on the stock market.

But the dot.com crash means the potential value of these companies has collapsed, and Durlacher has had to write down the value of many of its investments.

The firm's chairman and chief executive Geoffrey Chamberlain admitted he had been taken aback by the change in market conditions.

"We have been surprised by the severity, longevity and speed of the change in market sentiment. It is unprecedented in all my own years in the City," he said in a statement.

The company also said it was not expecting any significant improvement in trading either through its internet services or its traditional offline business for the remainder of 2001.

See also:

15 Sep 00 | Business
Durlacher profits soar
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