Stock Market News
Conviviality sees current year earnings 20% below market views
AIM-listed alcohol wholesaler Conviviality was under pressure on Thursday after saying that adjusted earnings before interest, tax depreciation and amortisation for the current year are likely to be around 20% below current market expectations.
In an update on trading for the 52-week period ending 29 April 2018, the group said that the change in expectations reflects a "material error" in the financial forecasts of the Conviviality Direct business, which means the EBITDA for the current period will be impacted by around £5.2m.
The company also said that while its sales and orders have held up at levels ahead of last year, margins in Conviviality Direct have softened since the start of 2018.
"In the revised guidance the company has assumed a continuation of the margin weakness for the remainder of the current financial year. A number of enhanced controls and disciplines have been introduced to address this and management believes that appropriate corrective actions are in place.
"The company has not seen any material weakness in overall demand and the previously announced cost saving actions remain fully on track."
Previous guidance for net debt of around £150m for the period ending 29 April 2018 remains unchanged.
At 1625 GMT, the shares were down 57% to 129.50p.
In an update on trading for the 52-week period ending 29 April 2018, the group said that the change in expectations reflects a "material error" in the financial forecasts of the Conviviality Direct business, which means the EBITDA for the current period will be impacted by around £5.2m.
The company also said that while its sales and orders have held up at levels ahead of last year, margins in Conviviality Direct have softened since the start of 2018.
"In the revised guidance the company has assumed a continuation of the margin weakness for the remainder of the current financial year. A number of enhanced controls and disciplines have been introduced to address this and management believes that appropriate corrective actions are in place.
"The company has not seen any material weakness in overall demand and the previously announced cost saving actions remain fully on track."
Previous guidance for net debt of around £150m for the period ending 29 April 2018 remains unchanged.
At 1625 GMT, the shares were down 57% to 129.50p.
Related share prices |
---|
Conviviality (CVR) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price