Work in the UK has slowed and overseas work is not so profitable, and operating profit or the year will be “materially below current market expectations”, the company has warned shareholders.
“As a result, we expect that we will not meet either of the net debt to EBITDA or interest cover covenants within our facility agreements for 31 March 2019 and we have opened discussions with our lending bank with a view to securing a deferral or waiver of the relevant covenant tests,” it said in a trading statement today. “We already have a number of clearly defined actions underway in order to materially reduce our net debt position.”
Chief executive Douglas McCormick said: “While it is disappointing to be revising expectations today, subdued domestic economic conditions and the headwind from political uncertainty is affecting many businesses' willingness to commit to major new projects. This has particularly affected the construction sector which underpins much of our business in the UK.
"Our strategy of developing a simpler, more robust platform and driving efficiencies continues. I am confident that the actions we are taking will improve the longer term prospects of the business and we will look to accelerate these actions to mitigate against the impact of an unusually difficult final quarter in the current uncertain macro-economic environment."