Engineer Widney says that it will make a small loss in the year to September 2008.
This is much worse than expected. FinnCap’s full year profit forecast was downgraded from £1m to £400,000 when Widney published its interim figures in May.
Customers are not ordering at the same levels in the past and some introduce extended summer shut downs of their factories. Demand is not picking up as expected and the order book hardly stretches past the end of 2009. Management is trying to reduce its cost base.
Prior to the trading statement Widney shares had risen 0.5p to 10.5p each. This soon changed and the shares fell back to 8.25p, valuing the company at £2.13m. Net debt was £2.79m at the end of March 2008.
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