HOWARD SEYMOUR | NUMIS
It’s disappointing that the firm has issued yet another profit warning when the last one wasn’t even that long ago. Most parts of the business are doing well, but the engineering services unit is having a disproportionate effect on the company. If construction is bad it can be a big issue for them.
STEVE CLAYTON | MIRABAUD SECURITIES
The divestments they’re making to offset the profit shortfall are unrepeatable – you can only sell off assets once. Next year, they will still have an earnings hole in the engineering services business and will need to find something else to sell. Every time they fix one area, something else happens.
JOE BRENT | LIBERUM
It is credible that changes in management, process and geographical foot print and the fact that only two problem contracts run into next year will help management to deliver a break-even result in engineering services next year. But we would be foolish to rule out further significant losses.