Engel East Europe, the central and eastern European AIM-listed developer, has issued a profit warning.
In a trading statement issued today, the company said:
‘After financing costs, the board does not believe the company can achieve a profit before tax for the full year as currently expected by the market.’
Engel said that the number of units sold was forecast to be 300 less than the 2008 target of 800 – down 37%.
It also said that net debt had more than doubled from E20.7m last December to £42.5m in September.
It said: ‘Since September, management efforts have been focused on improving profitability and cash flow through the sale of units, rigorous cost control and limiting construction activity.’