Boomerang Plus warns on profits

15th Jul 2009 08:30

Welsh TV group Boomerang warned that profits for the year ending May 2009 will be materially below market expectations.The group said the current economic climate has led to widely publicised issues affecting the sector as a whole, including project delays, cancellations and reduced programming tariffs and margins. The group itself has not been immune from these issues.Two of its projects which were expected to contribute significantly to the results for the year ended 31 May 2009 have underperformed financially. "These factors have led to a reduction in the Group's overall gross margin and as a result the Group's profits for the year ended 31 May 2009 will be materially below the Board's expectations," said the groupThe group said trading conditions remain challenging and are expected to impact on the first half of the current financial year. "However, the Board is reviewing the Group's cost base and will make savings and efficiencies where appropriate and there is a strong pipeline of work for calendar 2010 and beyond," it added.