House broker KBC Peel Hunt was not overly impressed by an unexpected profit-warning. Analyst Max Royde says the electronic technology solutions provider still has long-term potential, but cautions ominously that 'the management has a significant hill to climb to restore credibility'. The reason for such language might be the fact that the warning came just 5 weeks after the company issued an upbeat trading statement crowing about new contract wins and excellent enquiry levels in all parts of the business. Now the situation is obviously somewhat different, with toy revenues 'now expected to be insignificant' in the year to 2003. It means turnover will be 'significantly below' the £2.9m Royde had pencilled in. And losses will be probably more than £1m higher that his forecast £1.9m. Cash of £6m remains in the bank but, with a big review underway and 30% of the workforce said to be facing the axe, this is a company in a degree of trouble. Avoid.