Bateman Engineering
Bateman Engineering warns on full year due to contract delays
Bateman Engineering BV said it expects its financial performance for the current year to be materially below current market expectations as a result of various contracts being put on hold and adverse currency effects.
Since it announced interim results on September 11 2008, the company has experienced a markedly more difficult trading environment with clients reassessing their capital expenditure programmes.
During the last few weeks the group has experienced various contracts being placed on hold or cancelled and it appears that a significant number of prospective orders are now unlikely to come to fruition for the foreseeable future, it said in a trading update.
In addition the majority of the currencies in which the group operates have deteriorated against the US dollar, which is having an adverse translation impact on its results.
The group continues to experience further difficulties with its legacy contracts and further costs to close out these contracts in excess of those previously provided will be required in the current financial year. At this stage the full extent of these costs is unclear and an exercise is currently underway to determine the level of additional provisioning that may be required.
Batemen said it is undertaking a review of all the group's prospects, contracts and operations in light of the changed economic environment to ensure the Group is appropriately positioned to meet the challenges ahead and will provide further guidance once this exercise has been completed.
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