Mayflower tumbles on sales warning
Wednesday 02 October 2002
Shares in Mayflower Corporation dropped more than 38 per cent after the maker of buses and truck bodies warned of a sales slowdown in its US heavy truck business.
It spelt yet more bad news for John Major, a Mayflower non-executive director who owns 219,000 shares in the company. The shares belonging to the former Prime Minister were worth £37,230 less by the end of the day, as the stock dropped 17p to 27.5p.
The stock market sell-off came despite the company's attempt to put a positive gloss on its trading update, which started by announcing new business wins worth £50m.
Investors focused, however, on the short-term outlook and here the company delivered a profits alert. Mayflower said that, following a recovery in the North American heavy truck market in the summer, this sector has experienced a "significant" reduction in order intake for fourth quarter delivery.
"Coupled with recent softening MVS [Mayflower Vehicle Systems] markets in the UK and Europe, customers continue to evaluate their response fully but it must be anticipated there will be an impact on MVS's contribution to the overall business this year," the company said.
Mayflower, run by chief executive John Simpson, said that "global uncertainties" continue to undermine customer confidence and it would be "prudent" to anticipate that for the second half of 2002, pre-tax profit will be no better than for the first six months of the year.
Old Mutual Securities reiterated its "sell" recommendation on the stock, and confirmed a reduction in its 2002 pre-tax profit forecast from £30m to £22m.
Mayflower said that its product, technology and market leadership gave it confidence that it would return to profit growth in 2003 and beyond.
Yesterday's new contracts, worth £50m, involve production programmes for Ford and a bus contract in the Far East. The Ford deal is a production order in the US of body structures for the company's GT40 super car, which will be introduced in 2004 and another contract is for supply of body panels for the Land Rover range in the UK, with production commencing in 2004.
Mayflower's TransBus is to build 120 of its new generation Enviro 500 double deck buses for Kowloon Motor Bus, in Hong Kong. The contract is worth £25m.
- 1 Windows 10: man updates PC, wakes up to find porn slideshow on repeat
- 2 The 'world's most beautiful vagina' has been debunked by science
- 3 John Green schools morning show hosts after awkward interview with Cara Delevingne
- 4 Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
- 5 Doctors declare war on Jeremy Hunt over weekend working 'myths' amid plan for seven day NHS
Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
John Green schools morning show hosts after awkward interview with Cara Delevingne
Jack the Ripper's final victim set to be exhumed following new theory on the killer's identity
Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...