Wyndehams share price tumbled by 20% after the group issued a profits warning as it neared its year-end.


The firm warned last Friday (2 February) that disruption at Essex web printer ET Heron, caused by the installation of the firms new 64pp web along with pre-press and bindery kit, would cost 1.9m.


Wyndehams shares fell immediately from 220p to 183.5p, and were trading at 176.5p as PrintWeek went to press.


Analysts had predicted that the 109m group would turn in pre-tax profits of around 16m, compared to last years 14.5m.


Wyndeham now says that profits in the year to 31 March will be "similar" to last year, excluding the exceptional costs at Heron.


"Installing the 64pp means knocking two presses out, and sometimes you have to bite the bullet if you want to get into a certain field," said chief executive Bryan Bedson.


The group also has plans to reduce its overheads by relocating six of its smaller commercial print businesses onto two sites. Bedson confirmed that Westway Offset and B&P will move from Wembley to Luton, but said the rest of the plans were still being finalised. Albert Gait and MPS are not likely to be affected.


He confirmed that negotiations to sell non-core packaging arm Riverside Packaging were ongoing.


*Fidelity Investments has upped its stake in the group to 12.21%.


Story by Jo Francis