GSH warns costs to double

8th Jul 2009 07:42

Facilities and energy management solutions provider GSH Group warns that larger than expected non-recurring costs will leave full-year profit even further below forecasts. The company, which also confirmed it will de-list its shares on 10 August, said closure costs linked to a restructuring would likely double to £3m. Substantial charges, especially in the UK in respect of headcount and restructuring costs, as well as changes in accounting policies, will also result in a further shortfall in the profit for the year to 31 July 2009.Profit before tax and a goodwill write-off is now expected to be between £2m and £4m despite a £3.8m profit in the first half to 31 January.GSH also said there's no guarantee that a tender offer at 190p a share will go ahead following the de-listing.On a brighter note, the firm has seen an improvement in the financial performance of its US business recently, although trade remains "challenging".The Continental European business has done well, in line with expectations, while the underlying performance of the UK core business remains "strong".