NCON.L Share News (NCON)

Communications network group Norcon warned pre-tax profit for the full year is expected to be considerably lower than previous expectations. "Higher than expected expenses related to unusual end of service costs of specific personnel and aborted acquisition activities, as well as reduced gross margins in the second half of 2010 mainly related to said delays in new projects," is expected to cause the shortfall in annual profit Norcon explained. Contracts with new clients have been slower picking up than anticipated at the time of the interim statement in September, the group added. "This is mainly due to M&A activities amongst telecom operators with which we have been in advanced discussions and associated regulatory issues causing delays and/or potential project elimination." Turnover in the second half year is now expected to be quite similar to the first half year.