The company regrets to announce that following a review by its bankers, the group's banking facilities have been discontinued Rage statement

The share price collapsed when the software group announced that its banking facilities had been withdrawn.

The company markets a football computer game based on Manchester United and England star David Beckham, and had expected the product to result in bumper Christmas sales.

But, shortly before the London stock market closed on Monday, Rage issued a short statement that alarmed investors.

It said: "The company regrets to announce that following a review by its bankers, the group's banking facilities have been discontinued."

Within seven minutes the share price had fallen 0.65 pence to 0.32 pence and the firm asked the stock exchange to suspend trading in its shares.

Cutting the losses

The Beckham game had generated revenues of £4.2m over the year to the end of June, helping Rage's turnover jump to £12.2m compared with £5.7m the previous year.

Pre-tax losses were cut from £17.1m in 2001 to £16.1m.

When it reported the figures, in October, Rage said it was looking forward to a boost in trading over the coming Christmas through sales of the Beckham game and a new game based on the Rocky films.

The firm had also signed up former SAS soldier turned writer Andy McNab to develop a military action game.

At the time Rage said it was "in a better position than ever to return to profitability in the short term".