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Boardroom battle costs Lakehouse as it issues £4m profit warning

Lakehouse has reported a fresh £4m profit warning, with the group’s outlook for the year now “significantly below its previous expectations”.

The recent boardroom battle at the firm along with pay-offs for departed senior staff cost it £1.5m, the group revealed today.

Lakehouse said the £4m hit was anticipated from writedowns on contract settlements in its regeneration division. 

At 30 June 2016, the group’s net debt was £30.6m, comprising £28m drawn from its £45m revolving credit facility and an overdraft of £2.6m drawn from its £5m facility.

Scottish Power win

Lakehouse has won a £37m deal with Scottish Power for the installation of domestic smart meters across northern Scotland, Wales and North-west England.

The group expects to install more than 450,000 meters over the course of the five-year term.

Lakehouse will make an investment of around £1.5m in the current financial year to mobilise and train more than 100 dual fuel engineers for the deal, which will create revenue for this financial year.

Lakehouse executive chairman Bob Holt said: “We are delighted to have secured this significant contract for our meter installation activities as well as significantly expanding our relationship with Scottish Power.

“This is an important award in helping to diversify our energy services division, reducing its current level of reliance on energy subsidies and particularly the Energy Companies Obligation, a policy currently being consulted on by the UK government.  

“Elsewhere in the group we are making progress and taking action on a number of operating challenges, especially on contract settlements within the regeneration division. As previously reported, the board remains very focused on restoring shareholder value.”

 

 

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