COMMENT
The Biggest Losers Of 2005

By David Kuo (TMFDragon)
December 19, 2005

In this earlier article, we identified a dozen of the best performers from the FTSE All-Share Index and the Alternative Investment Market in 2005. But now it's time to take a look at the losers.

The table below lists the stock market's twelve worst performers in 2005 that had market values of £100m or more before their fall from grace.

Pos.	Company	Fall This Year
1.	Sanctuary Group (LSE: SGP)	-94%
2.	Patientline (LSE: PTL)	-77%
3.	Phytopharm (LSE: PYM)	-75%
4.	Gresham Computing (LSE: GHT)	-75%
5.	Autologic (LSE: ALG)	-64%
6.	Inion (LSE: IIN)	-59%
7.	Maiden Group (LSE: MDN)	-59%
8.	Games Workshop (LSE: GAW)	-59%
9.	TTP Communications (LSE: TTC)	-59%
10.	Jessops (LSE: JSP)	-48%
11.	Zetex (LSE: ZTX)	-48%
12.	Business Post (LSE: BPG)	-46%

There has been nowhere for crisis-ridden Sanctuary Group to hide after it warned that profits would be substantially below expectations. It is the biggest loser in 2005 by some distance. The music company, which blamed its problems on delays to new album releases, now plans to raise as much as £100m to help beef up its badly-damaged balance sheet.

While Sanctuary is waiting patiently for its artists to deliver, telecom company Patientline is awaiting a report from Ofcom. This concerns an investigation into the charges that it levies on bedside phones at NHS hospitals. Patientline said the negative publicity over the enquiry has forced it to renegotiate its banking facilities.

Elsewhere in the telecom sector, a profit warning badly unsettled TTP Communications. The company, whose software in used in Blackberry devices, said its mid-year results were its worst in ten years. Meanwhile, diode maker Zetex blew a fuse when it said delays to the launch of new mobile phones and television sets would result in a drop in revenues. Gresham Computing sank on worries that revenues at Real Time Nostro, its collaboration with Cable & Wireless (LSE: CW.), remain modest.

Phytopharm has warned that its losses and cash outflows will continue for a number of years. The company, which develops medicines from plants, also said its developmental medicine for Alzheimer's disease was no better than a placebo. Meanwhile, Finnish healthcare company Inion sank after it ended an exclusive deal with US firm Stryker (NYSE: SYK).

Disappointing new car registrations in 2005 has been the undoing of Autologic. The company, which prepares and distributes finished cars in Europe, is also expected to swing into a small loss this year. Weakness of billboard advertising that has been Maiden Group's problem. It said stagnant consumer prompted companies to curb ad spending.

Games Workshop blamed a bursting of the "Lord of the Rings" bubble for its drop in sales. Jessops has suffered from a downturn in high street spending, and Business Post boss Paul Carvel quit after the mail delivery firm issued three profit warnings in one year.

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