29 September 2014 – trading statement
The group has issued yet another profit warning with a £75m shortfall of profits being discovered in the UK construction business. This means that 2014 adjusted pre-tax profits are now likely to emerge at closer to £85m as opposed to the £160m previously forecast. The chairman has stated that he is to step down and KPMG have been appointed to carry out a detailed review of the contract portfolio within the UK business. Although the group’s financial position remains robust due to the impending sale of Parsons Brinkerhoff for £600m, the latest warning has come as a total shock to investors. Given the ongoing uncertainties the shares are no more than a HOLD even after today’s fall in share price.