Waste management specialist Shanks saw its shares plunge more than 12 per cent yesterday after warning that its full-year results would fall short of City forecasts.
The firm, founded in 1880 as a building company operating in the west of Scotland, has been hit by a downturn in the construction industry, affecting volumes at its solid waste business, which sorts and processes industrial and commercial rubbish.
Chief executive Peter Dilnot said: “The board therefore now expects the result for the year to 31 March 2013 will be slightly below the range of current expectations.”
Investec analyst John Lawson said he had lowered his pre-tax profit forecast to £29 million following the update, down from £34.5m previously.
Shares in Shanks fell 11.25p, or 12.5 per cent, to finish yesterday’s session at 79p.