Computer services group Horizon has warned that further job cuts are possible if market conditions deteriorate further, despite axing more than 180 jobs in the Republic and Britain over the past three months.

Most of the job cuts have taken place in Britain and Horizon chief executive Mr Charles Garvey said the rationalisation programme was now virtually complete. Asked about further possible job cuts, Mr Garvey said: "It wouldn't be prudent to say 'that's that'. We don't expect anything materially different but if things do change for the worse, we are prepared to make more cost cuts. The fact that we bit the bullet puts us in a strong position to deliver growth even in these difficult markets."

Mr Garvey said companies had to assume the economic downturn would not improve in the short term. Horizon's cost-cutting programme - which involves the 180-plus job cuts, closing three offices and discontinuing a number of operations - aims to generate annual savings of €10 million (£7.88 million).

Horizon's trading in the year to the end of June was broadly in line with revised forecasts after last May's profit warning. Revenues rose 38 per cent to €409.5 million and earnings before interest, tax and depreciation were 15 per cent higher, on €18.5 million. Earnings per share rose 5 per cent to 17.5 cents.

The restructuring programme involved an exceptional charge of €2.9 million, while Horizon has also taken a €16 million goodwill hit after carrying out an impairment review on Commerce NTI, the company it acquired in November 2000.

Although the results seemed to show that Horizon's restructuring programme was beginning to bear fruit, the shares fell nine cents to a new low of €0.65. This compares with a December 1999 flotation price of €1.46 and a high of €14 in the first quarter of 2000.

Since then, the shares have been in freefall, halving in value in mid-May from €4.05 to €2.19 after the profit warnings. Yesterday's new low means the shares have fallen almost 95 per cent since that early 2000 high of €14.