Flare Group shares plunge as it revises forecasts downwards
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES in Flare Group lost about a quarter of their value yesterday after the building materials company said it was revising its estimate of pre-tax profit for the year ended 31 December downwards from pounds 750,000- pounds 1.25m to between pounds 100,000 and pounds 200,000.
It said the group's position has continued to be affected by the economic situation in Asia and by the strength of sterling in the last quarter of 1997. The shares fell 10p to close at 30p.
"The warm winter adversely affected the group's heater brick business and reported results from others in the ceramics industry are evidence of difficulties being experienced by many of our principal customers, which similarly affected our business adversely in the last quarter," Flare Group said.
It said it had already taken active measures to reduce costs in all areas of the business. The strategy of concentrating on specific non-Asian markets has begun to take effect and the group is seeing an encouraging level of potential business, it said.
It said it expected, later in the year, to launch several new consumable products which have considerable potential both in terms of market size and revenue in 1999 and beyond.
Last November, shares in Flare fell sharply when it issued a profits warning, saying that because of "exceptional" economic conditions in Asia, it had revised down its expectations for pre-tax profits in 1997 to between pounds 750,000 and pounds 1.25m.
The group will report its results late next month. The company's shares have collapsed from a recent peak of 149.5p last April.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments