13th Apr 2005 07:00
Capcon Holdings PLC13 April 2005 Capcon Holdings plc ("the Company") Trading update The directors of the Company have reviewed the current trading of the businessin advance of the release of the interim results for the six months to 31 March2005. The performance of the Investigations business has continued to be volatile andhave an unpredictable effect on the profit of the Company as a whole, due to thedifficulty in forecasting the completion of high value projects in the shortterm. The division enjoyed a good first quarter trading, however the number ofprojects that have completed during the second three months to the end of March2005 has been less than that anticipated by the Company. Furthermore, the re-structuring of Capcon Vincent Sherman, the specialistinsurance investigator, and the establishment of a new specialist investigationsbusiness have resulted in additional costs being incurred in order to positionthe business for future growth. This investment is expected by the Directors toreap significant returns on the costs incurred. As a consequence of the above events, the directors of the Company believe that,despite trading in Audit & Stocktaking and Capcon Argen achieving close tobudget, the financial performance of the group for the six months to 31 March2005, and subsequently the year as a whole, will now be significantly below theCompany's expectations. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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