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City File: London International Group

Saturday 19 June 1993 23:02 BST
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THE PICTURE looks distinctly grey at London International Group, whose photo-processing division produced profits 45 per cent down in the first half. Since summer snapshots are the chief source of revenue, developments in the second half will prove even worse.

Losses of some pounds 9.3m for the last six months are expected to pull the division's full-year figures down to a pounds 3m loss, against 1992 profits of pounds 5.9m.

LIG's surgical glove and health and beauty businesses have held up rather better, but gone are the days when LIG's share price shot up to 400p, in expectation that the Aids scare would boost sales of Durex, its most famous product.

It may also be affected by the monopolies inquiry into the UK condom market, of which it has 75 per cent.

LIG is expected to turn in pre-tax profits of about pounds 31.5m, including a pounds 3.5m exceptional charge to pay for restructuring its snapshot business.

The shares are judged a hold, but in the light of these woes, spare a thought for the new finance director, who joins at the end of June.

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