Shares in e-learning venture AdVal have fallen more than 20 per cent today, after a directors' warning on proposed full year figures. James Crux reports.

After assessing trading up to 30 September, Aim-listed AdVal (ADL) has warned that results for the year to March 2002 are likely to be 'significantly lower than market expectations'. Management explains that the tragic events of 11 September have 'further impacted' on already depressed business confidence and the general economic slowdown, hitting revenues in the past month.

Finance director Paul Gormley says that first half figures, due in November, will reflect large amounts of investment in KeyKnowledge, a joint venture with FT Knowledge, which provides off-the-shelf business training titles. And results for the full year 'may be at or around the breakeven level' if demand for off-the-shelf titles and traditional training and development products continues to slip.

AdVal lost £180,732 on turnover of £4.7 million in the year to last March. But analysts had been forecasting a turnaround this year to pre-exceptional profits of £800,000 before tax on £7.6 million of sales.

KeyKnowlege remains 'in an investment phase'. Though sales met expectations during the period from January to August, September saw 'a sharp decline in sales compared to budget'.

AdVal expects some contraction in the traditional training and development product and services markets, although Gormley added that 'we've moved away from the face-to-face side and have very little exposure there'. Over the past two years, the group has moved further away from this sector in favour of e-learning, higher level change management and executive development consulting.

In May, it bought Testline, a company that tests the reliability of e-learning products. Two months later, it snapped up Terra Nova Media, a provider of internet services.

In afternoon trading, the shares were marked down almost 20 per cent to 18.5p, down from a 52 week high of 63.5p.