Programmed shares plummet following guidance cut
Shares in Programmed have sunk more than 20pc after the labour hire and maintenance group slashed its forecasts.
Shares in Programmed Maintenance Services have slid more than 20 per cent after the labour hire and maintenance group slashed its earnings guidance for the current financial year.
The company (PRG) now expects EBITDA earnings for the current fiscal year to be about $100 million, down from its previous estimate of $120m. “The short term revenue growth in its staffing business will now not offset the steep decline in the marine business. The net reduction in revenue will, therefore, lead to lower earnings,” the company told the ASX on Thursday. Programmed, which posted a $98m net loss for the year to March 31, has seen its marine business revenues slide 80 per cent in two years on the back of a slump in oil prices and completion of three large LNG projects. The company said it will incur an additional charge of $7m in FY17 on account of further job cuts in the marine business.
By 12.40pm (AEST), Programmed shares were trading at $1.58, still down 32 cents, or 16.8 per cent.
AAP
More Coverage
Add your comment to this story
More gas in the Bass? Depends if it’s in the national interest
By taking control of the moody offshore Victorian field, Woodside could find more gas, giving it major clout in Australian energy politics.
MinRes turns off funds for founder’s brother
A mining company led by Chris Ellison's brother has collapsed after MinRes refused to extend more interest-free credit, despite holding a majority stake in the business.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout