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Guardian's disaster recovery venture a disaster
Unforgiving market bites deep into market cap...

By Jon Bernstein

Published: Friday 10 August 2001

Guardian iT, the company behind the much-vaunted internet 'hotels', has run into trouble after demand for its off-site disaster recovery services proved dissapointingly low.

Yesterday the firm warned shareholders that the web-hosting business was likely to sustain continued losses up to as much as £5.5m.

The market responded by wiping £141.3m off its market capitalisation.

Launched back in January, the internet hotels were set up near Heathrow at a cost of £50m. However, by the beginning of August, only half the 190,000ft site was being used.