Newsplayer, the AIM-listed supplier of internet content which counts Sir David Frost among its directors, looks to be headed for a cash crunch after warning yesterday that profitability will be delayed.

The news sent its shares down a staggering 75% to just 3.5p.

The company has just £438,000 in the bank and is burning £160,000 a month.

Originally it forecast profits this year but yesterday admitted that results will be significantly below expectations and next year the company will merely break even.

While talks continue with banks and individuals willing to help plug the gap, Sir David has loaned the firm one month's worth of working capital and has deferred a £150,000 royalty payment he is due in January.

Shareholders are likely to be annoyed with Newsplayer's management who sold stock in July.

Chief executive Paul Duffen and fellow director Barry Llewellyn each sold 975,000 shares at 37p, both making £360,000.