Kinetic, a UK-based defense technology group, has blamed technical and supply chain issues in one of its large programs and warned of possible one-off write-downs.
The UK group said in a statement on Thursday’s transaction that it hopes to keep costs below £ 15m without revealing details. We plan to make acquisitions to maintain medium- to long-term guidance and promote growth.
“We are experiencing technical and supply chain issues in large and complex programs that may require a one-time write-down to short-term guidance if not mitigated,” Qinetiq said. Says. “We are working closely with our customers and working with the supply chain to recover the program and reduce this risk to less than £ 15m.”
Qinetiq said half-year earnings are “in line” with market expectations.
For the full year, we expect single-digit sales to increase by about 5%, and operating margin will reach the lower end of the 11-12% forecast range before the one-time write-down. However, in the short term, we expect the margin to be about 100 basis points lower.
“This forecast includes a shift in customer missions from Afghanistan and the short-term impact of Covid-related delivery and supply chain challenges in the United States,” said Qinetiq.
The company’s share price fell 10% in London’s early trading Thursday, and its performance fell 7% that year.
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