Trading Update

RNS Number : 8137R

Bilby PLC

05 March 2019

 

5 March 2019

Bilby plc

("Bilby" or the "Company")

Trading Update

Bilby Plc, a leading gas heating, electrical and building services provider, announces the following trading update for year ending 31 March 2019.

The second half has seen a continuation of certain challenging customer circumstances originally announced in the interim statement in December 2018.

As previously announced P&R, one the five companies within the Group, gave notice of termination of its contract to supply building maintenance services for Ministry of Defence properties and is still subject to dispute and resolution proceedings. Additionally, delays to a major gas installation contract have continued and the Company remains in active discussion with the organisation regarding a resolution. As a result, P&R, through which the Company was undertaking both contracts, will now report a significant loss for the full year. Accordingly, the Board expects the trading losses and associated write offs at the division to lead to the Group reporting a positive EBITDA of between £2.0 to £3.0 million before non-underlying restructuring costs and losses associated with the termination of the contract for Ministry of Defence properties. Whilst the future of gas services within the P&R division is now being reviewed, it remains a core service for the rest of Group.

The other divisions of the Group continue to trade well and in line with management expectations for the current year.

Sangita Shah, Chairman of Bilby Plc, commented:

"We are extremely disappointed that certain specific P&R customer engagements will have a material impact on the Group's results for the year ended 31 March 2019.  These isolated instances are not reflective of the robust trading within the other four Bilby companies that continue to trade in line with management expectations. The Group is undertaking a detailed review of the P&R division and will update the market in due course."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Enquiries

Bilby plc
Sangita Shah, Chairman	[phone] (via Hudson Sandler)
Canaccord Genuity Ltd (Nominated Adviser and Joint Broker)	[phone]
Corporate Broking: Bobbie Hilliam Georgina McCooke Sales: Jonathan Barr
Stanford Capital Partners (Joint Broker) John Howes/ Bob Pountney	[phone]
Hudson Sandler (Financial PR)	[phone]
Charlie Jack Bertie Berger

 

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