ANDREW WHITTOCK | LIBERUM CAPITAL
It’s a management change after another profit warning. More cost overruns will lead to a further (unquantified) downgrade to 2012 expectations. John Kennedy states very clearly that there will be changes in the senior management team to make the best of a fundamentally sound business.
MALCOLM GRAHAM-WOOD | VSA CAPITAL
There is a terrible sense of deja-vu as the excuses mounted for the indiscretions of the last few months. The statement from John Kennedy that he was disappointed says it all. I still think that the business won’t go bust, as he will get to grips with the operational management.
KEITH MORRIS | INVESTEC SECURITIES
It is clear that there is a fundamental issue in the delivery of fixed price contracts, which will require a change of senior management. Until losses are quantified, the banks are mollified and a new team is in place, we would steer clear of the shares.