ENTU UK Share News (ENTU)

(ShareCast News) - Entu confirmed on Tuesday that its current EBITDA expectation from continuing operations and before exceptional items for the year ended 31 October is expected to be within the range previously announced, at approximately £2.6m to £2.7m.The AIM-traded company said in addition, exceptional costs relating to the planned cost-saving processes in FY 2016 were expected to be approximately £1.9m in line with management's previous expectations, and net cash at the year-end was £0.8m."As previously reported, since the group was admitted to AIM, there have been a number of significant changes both in Entu's markets and within the group itself, resulting in a simpler business and re-focus on the core Home Improvements business," the firm's board said in a statement."These changes include the closure of the solar business in 2015 after the government's unexpected reduction in feed-in tariffs, the disposal of Norwood Interiors, the exit from certain under-performing commercial business streams, the closure of Europlas, and the strategic disposal of Astley Facades."In the light of these developments, and as part of the year-end process, the group has undertaken a thorough and detailed internal review of the balance sheets of the non-trading and trading subsidiaries of the group."As a result of the costs incurred to exit from those discontinued operations, the balance sheet review exercise and other non-recurring charges, the reported results for FY 2016 would contain further exceptional and discontinued items totalling approximately £6.8m, the board said, and a significant proportion of those items were non-cash in nature."The group has also conducted a detailed review of its accounting policies to ensure they are in line with best practice and appropriate to the business going forward."This has resulted in the accounting for its repairs and renewals service agreements and finance commissions to be changed to reflect more appropriately the timing of revenue recognition as well as other adjustments to bring accounting policies in line across the group."Entu said the adjustments were not expected to have a material impact on the FY 2016 result, but would result in a prior year adjustment of approximately £2m."The aggregate effect of these actions, taken with the objective of providing the group with a balance sheet to support future trading, is that net liabilities of the group are expected to be in the region of £8.5m, subject to finalisation of the group's tax position for the year."The losses are expected to be concentrated in the subsidiaries relating to the discontinued operations."As a result of that, the board said it determined that it is not appropriate to propose a final dividend, but it intends that Entu return to the dividend list as soon as possible."The board confirms that revenues for the first three months of the current year are in line with management expectations."It also confirms that it does not expect the balance sheet review to have a material impact on its expectations of profitability or cash generation in the current year."Entu said it expects to announce its full year results in early March 2017, at which point it will provide further detail on the outturn for 2016 and the group's plans for the current and future financial periods.