Anglian shares dive by 27% after second profits warning

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The Independent Online

Anglian Group, which makes windows, doors and conserv-atories, yesterday hit investors with more bad news, saying that it had still not recovered from production problems earlier in the financial year.

Anglian Group, which makes windows, doors and conserv-atories, yesterday hit investors with more bad news, saying that it had still not recovered from production problems earlier in the financial year.

The company's shares plummeted 27 per cent to 186p, as it warned that pre-tax profits would fall 10 per cent from last year's £30.5m, for the year ending 31 March. It said that it expected turnover to be flat at £253m.

Anglian had anticipated trading would return to normal levels in the second half of the current year, following production problems that had been reported with the interim results in November.

Yesterday however, it warned that customers who it had been forced to turn away because of the difficulties had failed to return. While full production capacity had now returned, demand had not, the company said. It also said that it was suffering from tight labour markets, especially in the South-east.

Eddie Boss, Anglian's chief executive, said: "We've got to start rebuilding our confidence with the housebuilders now, but clearly when we couldn't supply what they wanted, they quite rightly and understandably put their business elsewhere."

He said: "The fundamental strengths of the business remain, and the management team will continue to develop our strong market position."

The company said it would recommend an increased dividend for the full year.

Production at Anglian's Norwich factory was disrupted by problems with the installation of a new computer system. The company had claimed in November that the difficulties were over and it had, at that time, forecast "a satisfactory outcome" for the full year.

Mark Hake, an analyst at Merrill Lynch, said: "Quite clearly the market does not like two negative bits of news in quite a short space of time.

"They first had these production problems at the end of last year, and they quite clearly are taking their time to sort them out." However, Mr Hake said there was nothing "fundamentally" wrong with Anglian and said that the firm had good prospects.

Anglian said it planned to spend £6-8m on manufacturing and new product development in 2000.

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