15th Jun 2016 06:28
LONDON (Alliance News) - Software firm Servelec Group PLC on Wednesday said its operating profit for 2016 is set to significantly miss its expectations amid contract delays in some of its divisions.
Servelec said its Social Care and Nuclear & Power businesses have both continued to trade in line, but market challenges facing its Healthcare, Technologies and Oil & Gas divisions will result in operating profit in 2016 being significantly lower year-on-year.
"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," said Servelec Chief Executive Alan Stubbs.
"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," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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