Energis shares freefall after revenue warning

Hard times ahead

Energis continued to slide this morning following yesterday's revenue warning that led to a freefall in its share price.

In a trading statement issued yesterday afternoon the alternative telco said that its turnover and earnings before interest etc (EBITDA) for the financial year are "unlikely to meet consensus expectations". Shares fell 50 per cent on the news.

Energis expects turnover for the full year to be down by around 5 per cent on anticipated revenues of £1.014 billion.

EBITDA is expected to be around 10 per cent below the current consensus forecast of £155 million.

The shock announcement caused panic among investors as its share price plummeted 57 per cent to end the day at 23p.

By mid morning today shares had fallen a further 21 per cent (5p) to 18p.

The company blames lower than expected revenue growth and increased pressure on its margins for the profit warning.

In a bid to resolve the situation Energis plans to cut costs by a further £30 million a year and reduce its capital expenditure.

No one from Energis was available to comment on whether any jobs would be lost as a result of this latest belt-tightening exercise.

In November Energis said it was axing up to 350 jobs in a bid to cut £20 million a year from its overheads. ®

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