Ocean Wilsons falls on profit warning

Ocean Wilsons Holdings tanked in early morning trade on Monday following a profit warning delivered in a third-quarter update.

Ocean Wilsons Holdings tanked in early morning trade on Monday following a profit warning delivered in a third-quarter update.

The company, which controls a Brazilian maritime services and logistics company known as Wilson Sons, as well as an investment portfolio said "profit for the full year may fall significantly short of current market forecasts".

Consensus estimates for the full year ending 31st December had been for revenues of £441.76m and pre-tax profits of £51.4m.

Wilson Sons' revenue for the nine months ended September 30th at $468.6m was 10% down on the previous nine months, which it blamed on the devaluation of the Brazilian Real against the US dollar.

Operating profit for the period plummeted by 29% to $55.8m, hit by lower revenues, as well as higher employee and depreciation expenses.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period at Wilson Sons was $105.6m (2011: $120.9m). Wilsons Sons adjusted EBITDA (excluding the share based payment expense) for the period was $107.9m (2011: $113.2m).

Capital expenditure for the nine months of $135.6m (2011: $191.9m) was spent principally on the expansion of Tecon Salvador, the new Guaruj shipyard and vessel construction.

At September 30th, Wilson Sons' borrowings (including obligations under finance leases) was $549.1m (December 31st 2011: $491.1m) of which $504.5m is non-current.

At October 31st, the investment portfolio including cash under management amounted to $233.6m. The investment portfolio represents $6.61 (£4.09) per Ocean Wilsons share.

CM

Recommended

A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.3%, but can you trust it to deliver?
Share tips

Persimmon yields 12.3%, but can you trust it to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022
Britain’s ten most-hated shares – w/e 12 August
Stocks and shares

Britain’s ten most-hated shares – w/e 12 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
16 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022