Pipex profits down, but says review is on track

Pipex have posted a drop in profits but say they are satisfied with the progress of its strategic review which involved putting the company up for sale.

Pipex posted a loss in 2006 results, mainly due to interest costs from loans to fund acquisitions.  Last year the company bought Homecall, Toucan and the Bulldog broadband customer base. 

However, its broadband customer base doubled last year to over half a million.  The company started a strategic review last month with bank UBS that also included a potential sale of the company.  However, reports suggest that many major bidders have dropped interest.  Many analysts believe that a sale is unlikely in the short term.

Pipex group said in a statement:

“The board notes that there has been a large volume of highly speculative press coverage, and would like to reassure shareholders that the strategic review, which is expected to be completed during the summer, continues to the Board’s satisfaction.”