Energis update reassures nervous investors

The telecoms group Energis yesterday painted a rosier financial picture than the market was expecting, noting it was in the bidding process for more than £400m worth of contracts.

In a trading update, the company said it now expected sales in the six months to 30 September to be "marginally below" £500m while Ebitda – earnings before interest, tax, depreciation and amortisation – would be at a similar level to the second half of last year's £75m.

While the new financial guidance was slightly beneath what analysts were expecting, the market was generally relieved that the news was not worse and shares in Energis closed up 2.6 per cent, or 1p, at 40p.

While the company said its performance was "resilient in the light of current market conditions", it conceded the economic climate was "markedly different" from last year and "continues to deteriorate".

Energis said it was too early to determine the impact on its business of the terrorist attacks in the US, it said some customers were likely to defer placing orders "until the general outlook becomes clearer".

Analysts reduced their Ebitda estimates for the year to closer to £175m to £180m from a range as widespread as £180m to £200m. Sales forecasts were also reined back.