Lakehouse issues profit warning, announces new £37m contract win

AIM-listed Lakehouse issued a profit warning as it said it would have to make another £4m in write downs for the year.

In a trading update, the company said it remained focused on resolving performance issues in its Regeneration division.

“This includes a number of contract settlements on which there is a range of potential outcomes for the Group, both in terms of cash flow and impact on the income statement,” Lakehouse said.

“Management anticipate there are likely to be further write-downs, during the current financial year as we seek to close out these issues with clients.”

“The group anticipates that the cost of and events surrounding the two general meetings held in April and August 2016, together with the exit arrangements (in line with contractual obligations) of certain executive members of management, will cost £1.5m.”

The Group is disappointed to report that the outlook for the current financial year is significantly below its previous expectations. This reflects a number of one-off and non-recurring items, upon which the Board feels it is important to take immediate action.

The company also announced a £37m new deal with Scottish Power to install 450,000 smart meters in homes across Northern Scotland, Wales and North West England.