Beleaguered infrastructure services vendor Getronics has revealed that its poor performance in the UK means it will have to take a 25m euro ($34m) impairment charge, and may keep the company in the red for 2007.
Overall revenue for its first quarter decreased 2% to 630m euros ($857m), though the services element of sales remained stable at 558m euros ($759m).
Getronics shares, which have taken a battering in the last 18 months, fell 7.7% on the news.
This latest failure piles even more pressure on CEO Klaas Wagenaar. He helped to rescue the company from a dire financial situation when he joined at the beginning of 2003 with a number of sell-offs, but the last 18 months has seen the company lurch from one crisis to another.
Under his watch Getronics endured a financial scandal at its Italian unit, which forced it to divest a number of operations after it breached banking covenants. Since then it has been investigated by the Dutch financial markets regulator, and its financial performance has continued to deteriorate. In February it withdrew its revenue target for 2008 as it wanted analysts to focus on profits, which is unfortunate given this latest announcement.