British education and training firm Wilmington Group Plc said on Wednesday bookings for its courses fell in the first quarter, prompting a round of cost cutting. The company's shares were down 8 percent at 133 pence early on Wednesday.
The company said trading in the three months to end-September was broadly in line with expectations, with underlying revenue up 4 percent year-on-year and adjusted profit from continuing operations up from last year. But discretionary spending by its customers was under pressure, and it had seen a reduction in some course bookings on a like-for-like basis.
Shares in the group were down 8.3 percent at 133 pence at 0853 GMT, as Numis lowered its 2009 forecasts by 10 percent and said it expected flat profit in 2009 and 2010. "Although much of Wilmington's training is mandatory, there is some discretionary spend, and that is where clients have cut back," analyst Lorna Tilbian said in a note.
But she retained her positive stance on the group, reflecting its experienced management, a strong balance sheet and a fundamentally robust business. Chairman David Summers said in a statement the group was looking at where it could reduce its cost base, and it was also selling its music information business Muze and its magazines 'Soap, Perfumery and Cosmetics', 'Manufacturing Chemist' and 'Cleanroom Technology'.