Integrator Morse is predicting a weaker second half of the year compared with the first six months, according to its pre-close trading statement released today.
Earlier this week, the firm revealed it had received a preliminary approach offer for the business, which “significantly undervalued” the company. This approach “may or may not lead” to an offer being made for the company, Morse said.
Today’s trading statement, which covers unaudited trading for the 12 months ended 30 June 2009, revealed that restructuring charges for the year are expected to be between £10.2m and £11.2m.
However, the firm is making good progress on its South Tyneside and Gateshead Business Schools for the Future contracts, with all outstanding invoices having been paid in full, the statement said. It also revealed Morse has a cash pot of around £12m.
Mike Phillips, chief executive of Morse, said: “We knew that this would be a difficult year for the group, but the board is pleased with the considerable progress that has been made. With the significant restructuring and change programme near completion, we have established Morse today as a niche provider of IT services and technology.
“The performance of the business units in the final quarter of the year illustrates the benefit of the cost reduction exercise and the much more focused approach of the group. The improvement in the net cash/debt position of the group, from a net debt position of £8.9m at 30 September 2008 to a net cash position of £12m at 30 June 2009, gives the group a much more stable, solid position from which to face the current economic environment."
Preliminary results are expected on 9 September.
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