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AEA Technology Group Plc (LSE:AAT) announced in a statement on Wednesday that profits for the 2011-2012 financial year will be dramatically lower than expected and that their CEO, Andrew McCree will step down from his position immediately.
AEA shares were down 84.8% to 0.3p at 11:58 am GMT following the poor news.
Reasons for Profit Reduction
Performance in the first half of the year has been in line with the expectations of the company, according to the news release. However, management’s projections for the second half have been significantly reduced due to poor performance from Project Performance Corporation, their Washington-based business.
The company claimed that PPC’s order intake in the long run remained on track, however, in the short run, their profile has been adversely affected by late order placements and some orders being dropped.
Despite their troubles with PPC, the company is confident in the strength of its other businesses; ERG in Boston, and AEA Europe remain on track to meet their expectations for the year.
Non-Executive Chairman Dr Paul Golby will be working with CFO Kevin Higginson to appoint a new CEO and hold discussions with shareholders and the banks.
Half year results are due to be announced on 30 November.
Company Spotlight
AEA Technology is an energy and environmental consultancy firm operating in the UK, Europe, and the United States. The AIM listed company brings together expertise in information technology, the environment, and energy to create solutions for its clients.
Operations in North America include two organizations; Eastern Research Group Ltd, and Project Performance Corporation. ERG provides environmental, sustainable facilities, and worker protection consulting services to the public sector. PPC combines IT and data management with environmental expertise to serve clients.
AEA’s primary areas of expertise are in air and water quality, energy and climate change, resources and waste, enterprise services, risk management, sustainable transport, knowledge transfer, and information management.
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