2 November 2018 – trading statement
The consultancy and recruitment group has issued a disappointing trading statement for the year to 31 December revealing that the delay in the extension of a large contract has not been resolved and it now seems likely that even if and when it is approved the level of work will be less than previously envisaged. There have also been project delays and reduced scope on some of the higher margin project delivery contracts so that profits for the full year will be less than previously expected. The group now only expects to break even in the second half and it has taken action to resolve some of these issues. Although readers may want to see evidence of a recovery in the group’s fortunes before investing we feel that the shares are a BUY FOR RECOVERY.