21/11/2012 - 15:05

Lycopodium warns of slowing growth

21/11/2012 - 15:05

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Shares in Lycopodium dropped on the ASX today, after the engineering contractor downgraded its earnings expectations for the 2013-14 financial year.

Lycopodium said it expected 2012-13 financial results to be in line with its record 2011-12, where it lodged a record turnover of $232.2 million for a net profit of $22.4 million.

The company, however, said it was unlikely there would be sufficient work to keep up that pace, and is anticipating turnover of between $180 million and $200 million in 2013-14.

“We will progressively provide greater clarity against this guidance through releases as part of our semi-annual results and forecasts,” Lycopodium said in a statement.

At close of trade today, Lycopodium’s stock was down 12 per cent, trading at $5.30.

Lycopodium’s announcement follows GR Engineering’s earnings downgrade earlier this week, which was also preceded by a series of downgrades and job cuts in the mining services sector.

VDM Group announced in late October that more than 40 full-time positions would be made redundant across its operations, as it forecast a pre-tax loss of between $7 million and $9 million for the first half of FY13.

The job cuts at VDM followed with Matrix Composites & Engineering announcing it had cut 46 jobs in October.

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