Landround calls in administrators

LANDROUND, the Chester-based group which runs customer loyalty schemes and promotions, has called in administrators.

Shares in the AIM-listed company were suspended this morning prior to a brief statement from the firm saying its board had made the decision on Friday.

Landround has been struggling for several months and previously told shareholders that it was considering selling some or all of its businesses.

A dispute with one customer left it with cash flow problems but its revenues were also hit by businesses slashing or freezing their promotional budgets.

Last month it said it was working closely with its bankers and advisers in a bid to stabilise its position.

In the six months to July 31 losses widened to £566,000 from £248,000 last time. Revenue was down 25% at £2.4m.

Landround was founded in 1992 and floated in 1997.