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 Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
- 2 Maisie Williams has an excellent message for one confused fan
- 3 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 4 Tampon tax scrapped in Canada after petition convinces conservative government
- 5 Kate Moss on the naked Calvin Klein shoot and the obsession that ended her relationship
Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
Maisie Williams has an excellent message for one confused fan
Archaeologists discover 2,400-year-old gold bongs in Russia
Tampon tax scrapped in Canada after petition convinces conservative government
Migrants in Kos: Photos show real tragedy after British tourists complain of 'awkward' holidays
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...