Morse said goodbye to CEO Kevin Alcock today as it unveiled a trading update which said full year revenues will come in below last year's.
The IT services vendor said that it had experienced “some deterioration in short term services in the final quarter of the year as clients have reduced discretionary spend”.
While first half revenues were up on the previous year, full year revs will be “marginally below last year’s £257.3m".
The balance of technology and services business was “fairly constant”, it said, and combined with “continued project issues and weaker performance in Spain, means that we have not seen the improvement in operations margins that had been planned”. As a result, EBIT will be broadly similar to last year’s £12.2m.
CEO Kevin Alcock is leaving the firm with “immediate effect” with Kevin Loosemore becoming executive chairman.
Loosemore said Morse was carrying out a review of its business, and would restructure into five individual business units which would report directly to him.
Back in February, Alcock shrugged off the gathering financial storm, saying: "The feeling of confidence within Morse that we saw at the beginning of the current financial year has remained, and, while mindful of the general market uncertainties, we are confident of the prospects for the full year.”
The full year figures should be unveiled in September. ®