StockMarketWire.com - Bilby warned its P&R divisions would record a 'significant' loss for the year as 'certain challenging customer circumstances' had continued in the second half of the year.

P&R, one the five companies within the group, would report a significant loss for the full year, which would have material impact on results for the full year, the company warned.

This comes after the company, as previously announced, gave notice to terminate its contract to supply building maintenance services for Ministry of Defence properties. While delays to a major gas installation contract had continued.

'Accordingly, the Board expects the trading losses and associated write offs at the division to lead to the Group reporting a positive EBITDA of between £2.0 to £3.0 million before non-underlying restructuring costs and losses associated with the termination of the contract for Ministry of Defence properties,' the company said.

'Whilst the future of gas services within the P&R division is now being reviewed, it remains a core service for the rest of Group,' the company added.

The other divisions of the group had continued to trade well and in line with management expectations for the current year.

'We are extremely disappointed that certain specific P&R customer engagements will have a material impact on the Group's results for the year ended 31 March 2019.  These isolated instances are not reflective of the robust trading within the other four Bilby companies that continue to trade in line with management expectations. The Group is undertaking a detailed review of the P&R division and will update the market in due course,' said Sangita Shah, Chairman of Bilby.


At 10:18am: [LON:BILB] Bilby Plc share price was -26.5p at 39.5p



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