APR Energy plunges on results delay

APR Energy, the temporary power solutions provider, last night announced that it would not be publishing its results, originally due out on Thursday, until April 16th.

The firm said this was "due to the complexities in reporting and accounting for the various corporate transactions which have taken place during the period".

The results are in line with current forecasts, the firm added, with revenues up 65% and earnings up 63%, with continued strong demand seen across all areas.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Stock broker Investec responded to the news by downgrading the stock from buy to hold, and slashed its target price from 1,230p to 1,100p, while Peel Hunt cut its rating from hold to sell.

Investec analyst John Lawson said: "APR Energy has taken the market by surprise by publishing pro-forma twelve month 2011 figures two days ahead of schedule. These look fine (in line with estimates), but the group will not be publishing full audited figures until April.

"This is unfortunate and will not be well received by investors, whatever the reasoning, as it leaves more questions unanswered. There is still be a good underlying story to tell, we believe, but this hiatus will not help the near-term investment case - even more proof of the pudding will be needed to galvanise some investors now."

The share price plunged 19.59% to 884.50p by 16:00. The stock is now down 155.50p this month and 240.50p this week.

NR