Loss-making e-commerce group Actinic is 'willing to consider joining with other companies' after a 200 per cent increase in third quarter losses. Elliott Davis reports.

Actinic (ACC) chief executive Kevin Grumball says: 'we are making it clear to investors that we are not blind to our position'. Grumball, who brought the small company e-commerce specialist to techMARK in May 2000, insists nothing has been ruled out, 'whether it be merger, acquisition or being taken over'

His comments follow a dismal set of third quarter results from Actinic, showing losses for the three months to June up £800,000 to £2.4 million on sales down more than 39 per cent at £338,000. This takes the company's total loss for the year so far to £5.5 million – and Grumball describes the current final quarter as traditionally quiet.

Some in the City feel that Actinic's focus on providing its e-commerce solutions to small businesses has been the route of its problems – the difficulties experienced by the likes of Boo.com and QXL Ricardo has made many reluctant to embrace the internet. Grumball, however, remains philosophical, suggesting with most new technologies 'after the early adopters you do get a dip in the market'.

As management considers its corporate options and waits for an upturn in market conditions, the focus has switched to conserving cash. As of 30 June, Actinic had £14.7 million in the bank and both staff numbers and marketing spend have been scaled back to preserve this position.

The cutbacks mean that Spanish and Italian versions of the company's core products – due for release this quarter – will not receive 'much of a marketing push'. Instead, as with the already launched German and French versions, the emphasis will be on local resellers.

The news was marked by a seven per cent share price fall to 6.5p today leaving Actinic only 1.5p above an all time low. Valued at more that 270p a share less than a year ago, the company is one of the ever growing number of technology ventures to fall more than 95 per cent in the past 12 months.