Cape (CIU) – another classic from Cape
Full year operating profits now expected to be significantly below previous expectations and the finance director falls on his sword! Loads of waffle in the announcement, in short, it doesn’t look very promising!
The Board has prudently extended the review to a detailed analysis of all balance sheet items Group-wide – about time! During October the Group also recognised a £1.5m provision in the Gulf/Middle East region relating to a potential bad debt with a customer in the Kingdom of Saudi Arabia reported to be in financial difficulty. Could that be a sign of further problems to come in the region? One broker has reduced earnings expectations by c.30% for FY 2012E and by 15-20% for FY 2013E with year end net debt now expected to be c£80-90m vs £51m previously. The forecast…