Significant contract losses have compounded the effects of tough competition and pressure on margins in commercial printing, which has been the groups principal area of weakness.
Wyndeham said the difficulties would hit its operating profit for the six months to 30 September to the tune of 1.6m. The group will also take a 300,000 exceptional charge for three bad debts resulting from customer receiverships. Operating profit before goodwill amortisation and exceptional costs, which it will report on 19 November, will be not less than 1.9m.
Shares fell by almost 29% to 96p, close to their 52-week low, after the announcement last Friday (7 November). They had recovered slightly to 100p by the time PrintWeek went to press on Tuesday (11 November).
Chairman and chief executive Bryan Bedson was, however, confident that the potential for a pick-up in the magazine sector, combined with the actions the group is taking, would improve performance next year, although he admitted he was disappointed with current performance.
Bedson also said that Paul Utting, who joined as Wyndehams managing director on 29 September, was already contributing strongly to the groups future development.
Wyndeham will provide more details about its actions when it releases its interim results next Wednesday (19 November).
Story by Gordon Carson
