We reflect Tuesday’s intra-day trading update in our forecasts, now anticipating revenues of £55m and an adj. loss before tax of £6.0m vs. a profit of £1.6m previously (£7.6m swing). This is in line with the guidance in the trading update. The primary impacts are: 1) £6.3m gross profit impact from deferral of two major projects, 2) £0.9m of provisions on one project, 3) £1.4m of redundancy costs, and 4) a positive £1.0m offset from other projects. Though the projects are delayed, not cancelled, we leave our FY25 forecasts unchanged for now. The cash flow impact is limited due to working capital management, with net cash of £1.0m expected at Jan. ‘24. We leave our recommendation under review, awaiting better visibility of the recovery.
