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ContourGlobal downgraded its outlook on earnings for the full-year blaming the later-than-expected close of the CHP acquisition.
'We expect 2019 Adjusted (earnings) EBITDA to be in the lower half of our previously communicated guidance of $720-770 million for the full year at constant foreign exchange rate,' the company said.
The CHP acquisition in Mexico, signed in January 2019, received shareholder approval and is expected to close in the third quarter of 2019, later than the initial expectations for a close in the second half of the year.
The weaker guidance comes as the company reported a jump in earnings and revenue.
For the six months ended 30 June 2019, adjusted earnings (EBITDA) was up 36% to $357.2m as consolidated revenue grew 15% to $617.4m, with income from operations up 27% to $142.6m.
'We are pleased with our pipeline and our accelerated progress towards achieving our IPO objective of doubling Adjusted EBITDA by 2022 without the need to issue shares or exceed target net leverage,' the company said.
At 8:39am: (LON:GLO) Contourglobal Plc Ord 1p Wi share price was +1.5p at 165.5p