Dods warns on profits amid political uncertainty

Dods warned on Monday that adjusted earnings for the year to the end of March 2019 will be "significantly" lower than forecast and that it expects to make a pre-tax loss.

The business intelligence, data, events, media and training company said it has experienced challenging trading conditions in the UK over the past three months given its political and policy focus in both the UK and Europe.

While trading in October and November was broadly in line with its expectations, December closed "significantly" behind amid "unprecedented" political uncertainty.

Fourth-quarter revenues are expected to be lower than anticipated against a backdrop of increased costs of delivery due to long lead time contracts and as a result the group has revised its expectations for the current financial year.

It now expects significantly lower than forecast adjusted earnings before interest, tax, depreciation and amortisation and a loss before tax (excluding non-cash impairments) for the year ending 31 March 2019.

"With lower than expected new product revenues and contribution from the 30% associate investment of £1.7m in the previous year, the board is undertaking a review of the software, infrastructure, product offering, investments and intangibles to assess any further impairment impact for the year," it said.

"The board is cognisant that the current hiatus in political decision making could continue to adversely affect our business beyond the current financial year end. With this in mind we remain focused on deploying the company's robust balance sheet to generate growth through potential merger and/or acquisitions in related market sectors whilst continuing to preserve and invest in the Group's heritage brand and assets."

Dods said it remains confident that it is capable of sustainable profit streams in the longer term despite a challenging market.

At 1240 GMT, the shares were down 31% to 6.37p.