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Trading statements

Servelec warns of shortfall in its views for FY 2016

15 June 2016 07:22

Servelec Group expects its operating profits for FY 2016 will be significantly lower than market expectations and lower than the outturn for FY 2015.

"We had anticipated a heavier weighting towards the second half of the financial year than has historically been the case, but it is now clear, given further slippage in contracts, that there is likely to be a shortfall in our expectations for FY16 as a whole," it said.

The company's Social Care and Nuclear & Power businesses continued to trade within expectations.

However, it warned that market headwinds for Healthcare, Technologies and Oil & Gas businesses were such that directors expected group operating profits for FY16 to be significantly lower than market expectations and lower than the outturn for FY15.

"The Company has taken swift remedial action, reallocating company resources and reducing costs."

CEO Alan Stubbs commented:

"I am disappointed to have to report the difficult trading conditions that have impacted our outlook for FY16. We don't believe that this reflects upon the quality or scale of the opportunities across our target end markets.

"However, some end markets are currently challenging and timing of order entry has become a short term issue. As such the management has adjusted our outlook and have taken swift and prudent action to reallocate the resources of the Group and reduce costs.

"The Board remains confident in the success of the business, and the shareholder value this will generate."

Story provided by StockMarketWire.com

Related Company: SERV

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