Aegis Group, the global communications network, is to withdraw funding from US internet marketing firm NewworldIQ and is set to write off millions of dollars in investment.
In a statement to the stock exchange, Aegis said that new forecasts had shown a significant deterioration in anticipated revenues and increases in expected losses and funding requirements at NewworldIQ.
It is likely, therefore, that the investment which amounts to $18.1 million will be largely or entirely written off. The remaining book value of Aegis’ investment in eVerger, represented by a holding in Dynamic Logic Inc, stands at just $2.5 million.
Despite today’s announcement, Aegis said that overall trading at the group remained in line with expectations (see Aegis Heartened By Positive Annual Results).