Three firms issue profits warnings
Thursday 22 July 1999
Caverdale shares fell 28p to 73.5p after the leisure products retailer warned that annual profits would fall significantly short of market expectations.
Coats Viyella, the British textiles giant, lost 3p to close at 41.25p after saying that its trading results for the first half of the year would be below last year's.
And Unigate, the food and distribution group, saw its shares fall 13p to 384.5p after it warned that first-half profits would be lower, although progress is expected in the second half of its financial year.
Caverdale said that while trading across most of its divisions continued to be in line with expectations and progress in its leisure marine operations had been strong, the growth of sales at its newly opened motorcycle accessories retail outlets has been slower than expected. "The additional costs incurred by Caverdale during its expansion have not been offset by sales," said the company.
Analysts had been looking for annual pre-tax profits of around pounds 5.2m after profits of pounds 6m last year.
Coates Viyella blamed poor market conditions in Britain, which it said had continued into 1999. Despite operating in an adverse trading climate, the company's businesses had started to show the benefit of radical management action, it added.
As for Unigate, its chairman Ian Martin said that it was too early to say whether the company's first-half shortfall would be recovered by the year's end.
Mr Martin said: "Trading conditions remain challenging and consequently some of our food businesses have had a difficult start in the current year, with overall profits well below last year's levels."
One company bucking the trend was British Steel, which saw firm demand in steel markets around the world sending shares up 4.25p to 161p.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Greece debt crisis explained: A history of just how the country landed itself in such a mess
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Greek debt crisis: Yanis Varoufakis's funniest (and most memorable) quotes
- 5 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...