Ilion shares dive after profit warning
Friday 15 May 1998
In a statement to the City, Ilion said: "Following difficult trading conditions in the UK during the first four months of 1998, it does not expect to meet market profit expectations for 1998."
The company said its trade in March had been in line with budget but after that it had been "exceptionally disappointing" in the UK. "UK sales in the first four months have only grown by 22 per cent, considerably below budget," it said.
Gross margins in the UK had improved from their low point in the fourth quarter of 1997 and were in line with budget, Ilion said. "The board expects to achieve substantial profits, but it is too early in the year to be precise. The consensus market forecast for pre-tax profit was pounds 8m."
Ilion's cost base is predominantly fixed in the short term and the shortfall in sales has translated into a significant decrease in profits relative to budget, the company said.
In its results statement in March, Ilion said it was now operating in a less predictable environment and that markets outside of France had started slowly in 1998.
"That volatility has continued," it said. In France the sales growth this year has been around 70 per cent with a consequent greater contribution to group profits but it was insufficient to compensate for the shortfall in the UK.
Wayne Channon, Ilion Group chairman, said: "I am confident in the strategy of retaining our market leadership in the UK and we will ensure that the required actions are taken to protect this position, albeit at the expense of short-term profitability."
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassingly brilliant leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
‘Ryan Gosling got someone pregnant and it's not me. Brazil you think you’re devastated…’
Israel-Palestine crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Palestine crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
Vanessa Feltz criticises 'vile' reaction to Rolf Harris allegations
iJobs Money & Business
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...