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MS International warns of 'substantial weakening' in results
17th Sep 2019 10:17
(Sharecast News) - MS International warned on Tuesday that it was "not immune" to the negative impact of widespread global economic uncertainty and that its full-year results would likely be substantially weaker than initially expected.
The AIM-listed group said that across its four divisions, the group was seeing "a progressive reduction" in demand for both its products and services.
MS highlighted the significant slowdown and delays in the awarding of UK defence-related contracts, following requests for tender submissions.
"Delays in anticipated contract awards, by their very nature, engender costly uncertainty and concern particularly when being the only genuinely qualified potential supplier," said MS.
"Unfortunately, responding to customer invitations to submit a comprehensive tender and then failing to award a contract is becoming an increasingly frustrating feature of our domestic defence business."
Given this reduction in demand, in the short-term MS expects a "substantial weakening" in its results, although for the future its board firmly believes that the group has been "well placed" and said it was "firmly committed" to defending its company position for the long-term.
Elsewhere, MS acquired Dutch corporate branding outfit Armada Janse for €339,000, funded from the group's existing cash resources.
"We believe that this acquisition, whilst further strengthening our already strong position in the petrol station branding market, will also introduce a highly reputable position for us in the international, general retail and automotive markets," said MS.
As of 1015 BST, MS shares had sunk 13.45% to 170.50p.
The AIM-listed group said that across its four divisions, the group was seeing "a progressive reduction" in demand for both its products and services.
MS highlighted the significant slowdown and delays in the awarding of UK defence-related contracts, following requests for tender submissions.
"Delays in anticipated contract awards, by their very nature, engender costly uncertainty and concern particularly when being the only genuinely qualified potential supplier," said MS.
"Unfortunately, responding to customer invitations to submit a comprehensive tender and then failing to award a contract is becoming an increasingly frustrating feature of our domestic defence business."
Given this reduction in demand, in the short-term MS expects a "substantial weakening" in its results, although for the future its board firmly believes that the group has been "well placed" and said it was "firmly committed" to defending its company position for the long-term.
Elsewhere, MS acquired Dutch corporate branding outfit Armada Janse for €339,000, funded from the group's existing cash resources.
"We believe that this acquisition, whilst further strengthening our already strong position in the petrol station branding market, will also introduce a highly reputable position for us in the international, general retail and automotive markets," said MS.
As of 1015 BST, MS shares had sunk 13.45% to 170.50p.