Entu (UK) sees underlying FY EBITDA at £3.6m-£4.0m
Source - SMW
Entu (UK) Plc said the year ending Oct. 31, 2017, is expected to benefit from the company's restructure.
It said EBITDA on the group's continuing activities before exceptional items for the year ending 31 October 2016 was expected to be between £3.6m-£4.0m, with an improved performance in the Energy Generation and Savings Division being offset by delays in realising the benefits of the May restructuring in the Home Improvements Division.
"Savings in the current year of approximately £0.9m, are expected to yield an annualised benefit of approximately £2.0m in FY 2017," it said in a statement.
"Additional cost savings expected to be realised in FY17 are now anticipated to be reinvested in the business to strengthen management, the balance sheet and to improve controls and processes.
"This reinvestment, coupled with the work still to be done in addressing the issues outlined above and management adopting a more cautious position, means that despite the expected improvement in profitability in FY17, the EBITDA outturn for the year ending 31 October 2017 is expected to be materially below current market expectations.
"The underlying core business is stable, and attractive opportunities for growth remain. It is anticipated that the restructuring and improvement actions being taken by Management will build a stable platform for a return to profitable growth in subsequent years."