Profit warning knocks shares in Courtaulds
Thursday 09 December 1993
The move comes less than a month before Martin Taylor, chairman, leaves to take up a new job as chief executive of Barclays Bank.
In a statement to shareholders, the company said trading conditions across the Channel had worsened in October and November while signs of a recovery in Britain during the early autumn were not maintained.
The company was also hit by teething problems in commissioning a new hosiery factory in the UK, with the result that it could not meet demand for the peak winter trading period.
Courtaulds is therefore unlikely to match last year's profits of pounds 39m before tax. However, it has pledged to improve this year's final dividend to reflect the board's confidence in trading expectations for next year.
The group first warned of difficult conditions at its annual meeting in May when it said first-half profits would be lower than previously.
But in September Mr Taylor reassured investors of a strong second-half recovery. 'I am confident there will not be a fall in profits at the year-end,' he said. 'A year ago we were in the ERM and interest rates were high. The benefits of a lower exchange rate and interest rate cuts are coming through.'
However, yesterday's warning prompted brokers to slash forecasts. Peter Dzedzora, textiles analyst at Henry Cooke Lumsden, downgraded his taxable estimate from pounds 46m to pounds 38m for this year and from pounds 52m to pounds 45m in 1994. 'This confirms that conditions in Europe are very tough. Companies have used the devaluation to boost sales not margins,' he said. Courtauld shares reached a peak of 600p last March.
View from City Road, page 36
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
- 4 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...