Bilby shares tumble as P&R subsidiary witnesses 'challenging customer circumstances'

Building services outfit Bilby has seen a continuation of "certain challenging customer circumstances" in the second half of its trading year.

Bilby revealed on Tuesday that P&R, one the five companies within the group, gave notice of termination of its contract to supply building maintenance services for Ministry of Defence properties and was still subject to dispute and resolution proceedings.

Elsewhere, delays to a major gas installation contract had continued and the AIM-listed firm remains in active discussion with the organisation regarding a resolution.

As a result, P&R, will now report a "significant loss" for the full year and the board expects the trading losses and associated write-offs at the division to lead to the group reporting a positive EBITDA of between £2m-3m before non-underlying restructuring costs and losses associated with the termination of the contract for Ministry of Defence properties.

Chairman Sangita Shah said: "We are extremely disappointed that certain specific P&R customer engagements will have a material impact on the group's results for the year ended 31 March 2019.

"These isolated instances are not reflective of the robust trading within the other four Bilby companies that continue to trade in line with management expectations."

Bilby noted that it was undertaking a detailed review of the P&R division and will update the market on its outcome in due course.

As of 0950 GMT, Bilby shares had tumbled 39.77% to 39.75p.