KBC Advanced Technologies says that its 2009 interim profits will be lower than the first half of 2008.
There was a 12.5p slump in the share price to 32.5p, which values KBC at £18.6m.
The second half should improve but this will not be enough to offsetthe shortfall in the first half.
Revenues are higher than at the same time in 2008 but the cost base has risen faster. Sterling’s weakness against the Euro has not helped.
Lower utilisation rates for the company’s consultants is the main problem. That is due to customers delaying contracts.
KBC is cutting back costs while making sure it has sufficient capacity for any upturn. However, KBC is not letting this setback stop it recruiting additional experienced consultants.
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