Bilby PLC Trading update (4686H)
01 August 2019 - 4:02PM
UK Regulatory
TIDMBILB
RNS Number : 4686H
Bilby PLC
01 August 2019
1 August 2019
Bilby plc
("Bilby", the "Group" or the "Company")
Trading update
Bilby Plc, a leading gas heating, electrical and building
services provider, announces the following trading and operational
update.
Further to the announcement on 5 March 2019, the Board continues
to expect to report positive underlying EBITDA of between GBP2.0 to
GBP3.0 million for the year ending 31 March 2019.
The Board has been engaged in a comprehensive operational and
financial review of the business that has accelerated with the
appointment of David Bullen as Chief Executive Officer in April
2019. This review remains ongoing. However, initial work undertaken
as part of the review has conclusively established that the Group's
loss-making activities have been isolated to historical management
failings in the Group's subsidiary company, P&R where, as
previously announced, the Group has been materially impacted by two
major contracts (the "Disputed Contracts"). Further information on
the Disputed Contracts is set out below.
In July 2019, the Group closed P&R's gas servicing division
and restructured all ongoing profitable building services contracts
to be serviced under the management responsibility of the Group's
subsidiary Purdy. This action has eliminated the losses from the
division.
The other four businesses within the Group continue to trade in
line with management expectations and the Board remains confident
in their outlook.
As previously reported, the Group terminated P&R's contract
with Amey to provide building services to Ministry of Defence
properties in May 2018. The major gas contract with East Kent
Housing was also terminated by the Group in April 2019. The Group
initiated formal resolution proceedings with both organisations to
recover disputed money owed. Bilby continues to vigorously defend
its position in relation to services provided and work undertaken
and invoiced in respect of these Disputed Contracts. However, any
outcome will be finalised through an independent adjudication
process. The Board anticipates material restructuring costs and
write offs associated with the Disputed Contracts for the year
ended 31 March 2019. The Group has recently received part payment
from one of the Disputed Contracts.
As a consequence of the ongoing resolution proceedings related
to the Disputed Contacts and with the intention to report in more
detail on their outcome, Bilby now anticipates releasing its
financial results for the year ended 31 March 2019 in early
September 2019.
Enquiries
Bilby plc
David Bullen, Chief Executive +44 (0)20 7796 4133
(via Hudson Sandler)
Canaccord Genuity Ltd (Nominated Adviser
and Joint Broker) +44 (0)20 7523 8000
Corporate Broking:
Bobbie Hilliam
Georgina McCooke
Sales:
Jonathan Barr
Stanford Capital Partners (Joint Broker)
John Howes/ Bob Pountney +44 (0)20 3815 8880
Hudson Sandler (Financial PR) +44 (0)20 7796 4133
Charlie Jack
Bertie Berger
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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