(Sharecast News) - Shares of Bilby surged on Thursday as it claimed to have resolved issues relating to its P&R business but reported a dive in interim profits.
The building services firm booked a profit before tax of £0.5m for the six months ended 30 September, down 52% on the same period last year, as revenue dropped by 18% to £29.8m.
The AIM traded company did not propose an interim dividend, having paid out 2.00p per share at the same point 12 months prior.
However, Bilby said it had resolved its legacy issues and completed the restructuring of P&R, which had suffered from operational failings that resulted from governance failings at the subsidiary.
An operational and financial review of the business is ongoing and has resulted in the implementation of an investment programme that the company said will ensure robust systems and governance.
Chief executive David Bullen said: "This has been a period of restructuring for the group in which we finally resolved the legacy issues relating to P&R and continued the operational and financial review that collectively has achieved a positive reset for the group.
"We have taken the positive steps to improve our levels of transparency and efficiency, as well as engaging staff at all levels to shape the future of the organisation. This will ensure that each subsidiary benefits from being part of a wider group and will accelerate the trajectory of our future growth path. I am confident that the actions we have taken, and continue to undertake, will ensure that Bilby is best placed to capitalise on opportunities moving forward."
Bilby shares were up by 21.98% at 24.70p at 1259 GMT.
19 Aug 2016 15:03