LibertyOne hoists warning flag

LIB says the market correction for technology-related securities has had an adverse impact on the value and current business plans adopted for a number of its investments.

On top of this the company will be writing off A$12.8 million following the liquidation early this month of Hong Kong based Chinese Books Cyberstore Limited. LibertyOne had a 25% stake in the venture, which it paid for with LIB stock.

The company says it will be adopting a conservative approach in assessing the carrying value of a number of investments, and that will mean a substantially worse result for the half-year to the end of June than for the same time last year.

In the meantime LibertyOne says it is continuing with a comprehensive review of its operations and investments , including identifying what long-term businesses it wants to pursue.

KPMG Corporate Finance has been taken aboard as corporate and financial advisers to conduct a review of LIB's business plans and operations and its joint venture interests. Late last month the tech company announced a new CEO had been appointed, and said it would not proceed with plans to list on the Nasdaq.

LibertyOne says half-yearly financial results should be available in early September.

Its shares were issued at A$2.00, and after a 4-for-1 share split in March 1999 traded as high as A$2.20 in October last year. They were trading Friday under 15 cents.

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