Spotless shares are tanking

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Spotless, the Australian cleaning, catering and laundry company, today delivered a profit warning.

And a short time ago, the company’s shares were down more than 41% to $1.28.

Spotless says net profit will be 10% below last year and EBITDA will be flat. Full year revenue in 2015 was up 12.3% to $2.823 billion, up 12.3%. Net profit was up 31.9% to $150.2 million.

New business growth has been slow and the synergy benefits from acquisitions are taking longer than expected.

Full year results will be impacted by a series of one-off and other charges including bid costs written off on tenders plus restructuring costs.

Martin Sheppard, a former senior partner at KPMG, was appointed CEO last month, replacing Bruce Dixon who led the company to an IPO in 2014.

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