(Alliance News) - Bilby PLC said Thursday it has undertaken a "comprehensive operational and financial" review of the company following the appointment of new Chief Executive David Bullen in April.
The gas heating, electrical and building services provider confirmed it expects to report underlying earnings before interest, taxes, depreciation, and amortization of between GBP2.0 million and GBP3.0 million for the year ended March 31.
In financial 2018, Bilby reported underlying Ebitda of GBP6.3 million.
Bilby said its review has isolated its loss-making activities to subsidiary P&R, which recently gave notice of termination of its contract to supply building maintenance services for UK Ministry of Defence properties. This is still subject to dispute and resolution proceedings.
Additionally, delays to a major gas installation contract for East Kent Housing resulted in Bilby's contract being terminated.
P&R was undertaking both contracts, and Bilby remains in active discussion with the organisations regarding a resolution over disputed money owed.
"Bilby continues to vigorously defend its position in relation to services provided and work undertaken and invoiced in respect of these disputed contracts. However, any outcome will be finalised through an independent adjudication process," the company said.
In July, as a result of the review, Bilby closed P&R's gas servicing division and restructured all ongoing profitable building services contracts to fall under the responsibility of subsidiary Purdy.
"This action has eliminated the losses from the division," Bilby said. The company added: "The other four businesses within the group continue to trade in line with management expectations and the board remains confident in their outlook."
As a result of the contract resolution proceedings, Bilby now expects to release its results for financial 2019 in September.
Shares in Bilby were 3.1% lower in London on Thursday at 31.26 pence each.
