Cosalt lowers trading expectations

Cosalt, the struggling provider of safety equipment to the oil industry, has lowered its trading expectations for the year to be 'significantly lower' than previously anticipated. The announcement saw the share price drop more than 58.15% to 0.68p from 0.94p overnight. The share price has fallen 83% in the past year which has seen the company's losses almost triple as it encounters challenging trading conditions. Blame for the fall was attributed to the delayed sale of the Marine division earlier in the year, with the company saying that this had a resulting pressure on cash flow, which in turn had an adverse effect on the margins of it offshore division. There has also been a resulting delay to the roll-out of the company's work-wear south east contract.A full review of operations and future funding requirements has been instigated and is ongoing, the firm said. NR