LONDON (ShareCast) - Electronic payment and loyalty card provider Universe Group (LSE: UNG.L - news) said operating profits will be down
on expectations because of lower sales forecast.
Total sales for the six months were down by more than 10% against the same period last year, almost entirely attributable to its withdrawal from contract manufacturing. Full year sales forecasts are therefore being revised downwards.
"Whilst the Directors expect trading in the second half of the financial year to continue to be profitable, the lower sales forecast will inevitably lead to a shortfall against current market expectations of operating profit, albeit operating profit is still expected to show an improvement on that reported for the year ended 31 December 2008," said the group
The group expects to report an operating profit in the first six months as opposed to a loss for the same period last year.
But across all market sectors it is experiencing delays or postponements of significant capital projects. It said discussions with customers indicate that this will continue to be the case throughout 2009.
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