We've also gone from just a US operation to a global operation and we're also going from Web filtering to email filtering," Mr Purdham.The company, which launches its email filtering product next month, said pre-tax losses in the nine months to 28 February had widened to $60.6m (£42m) from $16m last time. Turnover was $27.3m up from $9m.Mr Purdham said he saw continued strong demand for the company's internet filtering products and was "currently optimistic" about achieving existing market expectations [of around $55m] for revenues for next year "In addition ... we believe that we will be achieve positive cash flow from our operations in the fourth quarter of the next financial year, well ahead of market expectations," Mr Purdham said. Analysts had expected the company to achieve that in 2002/2003.SurfControl has $17.6m of deferred revenue of which $14m will be booked next year.

The company's $23m of cash will take it to profitability, having reduced its burn rate to $1.7m in the third quarter.Analysts at Equityinvestigator said the results were "undeniably good" and upgraded their numbers but said "market conditions, exposure to the US, seasonality risks to sentiment and cash resources" meant they would maintain their "sell" recommendation.SurfControl also announced that Rob Barrow, would step down as executive chairman in mid-June. Mr Barrow, who will remain on as non-executive chairman, confirmed that he had no plans to sell any of his 1.2 million shares.. Savoy Asset Management (SAM), which is chaired by the former Conservative Chancellor Kenneth Clarke, yesterday warned that its profits would be "substantially below" market expectations Its shares plunged 35 per cent to 160p. Savoy Asset Management (SAM), which is chaired by the former Conservative Chancellor Kenneth Clarke, yesterday warned that its profits would be "substantially below" market expectations.

Its shares plunged 35 per cent to 160p. Teather & Greenwood, the company's broker, slashed its pre-tax profits forecast by 50 per cent to £600,000 for the year to 31 March following the profits warning.SAM said its results were hit by a failure to attract new business in the Middle East, an area it had been targeting, as well as a general downturn in share buying due to the poor market conditions over the last few months.SAM, which specialises in private client business, had been cultivating links with the Middle East and is 30 per cent owned by the Global Investment House of Kuwait. It was hoped that Global Investment House, which took a stake in SAM early last year, would introduce it to Middle Eastern contacts. SAM has more than £80m in existing business from Middle Eastern clients.The company had wanted to attract more business from the Middle East in order to boost its funds under management from its current £600m to over the significant £1bn mark.SAM said in a statement that the Middle East project has also been adversely affected by market conditions. The City has been disappointed that SAM did not manage to attract new business in the region before the market downturn.SAM yesterday refused to elaborate on its official Stock Exchange announcement.The business was formed four years ago out of a four-way merger between the brokers Tutton and Saunders with Guildhall, a fund manager, Gracechurch and Julian Fitter.