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.