Servelec shares plunge 33% on profit warning

Shares in technology and software group Servelec plunged a third as it warned operating profits would come in significantly lower than market views for full year 2016, and below that for 2015.

The company said it had taken swift remedial action, reallocating resources and reducing costs.

"We had anticipated a heavier weighting towards the second half of the financial year than has historically been the case," it said.

"But it is now clear, given further slippage in contracts, that there is likely to be a shortfall in our expectations for full year 2016 as a whole."

Just before midday on Wednesday, Servelec's shares were down 33.53% to 226p.

Chief executive Alan Stubbs said he was disappointed to report difficult trading conditions had impacted Servelec's outlook for 2016.

"We don't believe that this reflects upon the quality or scale of the opportunities across our target end markets," he said.

"However, some end markets are currently challenging and timing of order entry has become a short term issue."