Temporary power provider APR Energy (APR:AIM) is in freefall as management admit they will miss earnings forecasts which have already been heavily reduced.
Higher than expected costs in demobilising power generation equipment trapped in war-torn Libya and contract delays are behind the revision to management expectations.
APR shares are trading 28% lower at 250p.
‘The company’s guidance at the beginning of the year was predicated on an expectation that contracts being pursued would have a financial impact by the fourth quarter of 2015,’ says a company statement.
‘While those opportunities still exist, and the market for interim power solutions remains strong – particularly in Asia-Pacific and Africa – customer decisions about deals in the pipeline have been pushed out until later in the year.’
APR, which re-negotiated its banking facilities on 1 April after admitting it would breach covenants, now says it could breach the revised agreement in 2016.
House broker Numis forecasts earnings before interest, tax, depreciation and amortisation (EBITDA) of $75 million (£48 million) in the 2015 calendar year and $109 million the year after.
Its 425p price target is based on tangible book value per share estimates.