Johns Lyng shares have 25% for Hy results, guide regulations -Capital letter

The news: John's Lyng's shares were impressed in the early trade after the construction service provider recorded a decline in net profit in the first half by 33% and defeated his instructions throughout the year, which was partly due to a lower number of insurance claims in the reporting period.

The numbers: The Johns Lyng shares had dropped by 25.5% to $ 2.83 at 11 a.m., which was the worst company in the ASX 200 index.

The net profit in the first half after taxes fell from USD 31.1 million to $ 20.8 million in the previous period. The sales of $ 573 million decreased by 6.1% compared to the previous year, 7% behind consensus estimates of USD 615 million.

The company explained a preliminary dividend of 2.5 cents per share of average forecasts of 4.4 cents.

Johns Lyng lowered his EBITDA instructions for the full year to $ 126.5 million, which is reduced by 4.5% compared to its earlier guidance of $ 132.5 million. In addition, sales instructions for the financial year lower 25%of $ 1.23 billion to $ 1.17 billion.

The context: The company experienced a “challenging operating environment” in the six months to December, with the benign weather conditions in all of Australia lead to a reduced volume of insurance claims.

In the Northern Rivers in New South Wales region, the work continued more slowly than expected, while the delays at the start of the project in the USA also impaired performance.

Citi -analysts said that benign weather conditions in NSW and project delays in the USA despite instructions, which implies a successive improvement in the financial contribution and the margin, could remain as a headwind for the group.

What they said: “While we expected a soft 1 -hour result, it was far below our expectations,” said the analysts from Citi.

“… there is no lack of challenges that [Johns Lyng] Navigated through and we expect them to remain for the time being. “