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

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023