Network Data profits hit by Hipstar demise

Network Data Holdings\' profits have plunged by more than a third as a result of the 1.5m in losses it suffered due to the collapse of subsidiary Hipstar.

Group turnover fell by 34% to 10.6m in the first half of 2008 compared with 16.1m during the same period in 2007.

The results also reveal group trading losses of 132,000 compared with a 1m profit last year.

Its appointed representative network Network Data broke even in the first half of 2008. It generated 1.2m profit in 2007.

Richard Griffiths, chief executive of Network Data Holdings, says: “We continue to aggressively pursue cost reductions with a view to improving performance.”