HSBC could play a key role in the future of Jessops after the UK high street photographic retailer issued its third profit warnings in as many months and warned it does not have enough cash to handle the seasonal rise in working capital needs after summer.

The profits warning yesterday sent shares in Jessops crashing two-thirds to close at 15p from 46.5p at the end of trading on Tuesday. By 10:10 GMT today, the shares had risen slightly to 17p. At that price, the shares have lost almost 90% of their value since Jessops floated at the third time of asking in October 2004 at 155p per share.