Shares in the telematics venture fell 30% after the company warned 'results for the year will be below expectations'. The vehicle tracking, security and fleet communications company said that although second half sales will be 'significantly higher' than the first half, it was 'unlikely to meet market forecasts for sales'. Barney Gray of house broker Beeson Gregory downgraded his sales forecasts from £4.5m to £3.5m and now expects the group to post losses of £1.2m rather than the original £400,000 profit forecast. Earnings per share of 1.7p were downgraded to losses of 8.3p. The directors explained that performance was impacted by higher-than-anticipated costs in establishing the business and a number of one-off expenses. At the company's AGM back in April, chairman Nigel Whittaker reported that good progress had been made in the first five months of trading and that there was 'a strong domestic and overseas pipeline for future sales'. However, alarm bells rang as the board admitted that 'the sales cycle was somewhat slower than had been hoped'. Interim figures back in February were in line with expectations, with pre-tax losses coming in at £184,000 on sales of £231,000. Eagle Eye came to the market via a reversal into Aim-quoted New Capital Invest last November. It was marked down by 15p to a new 2001 low of 36p on the news.

Eagle-i Holdings	AIM	£11.43m	3.50p	0.00p
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