Programmed shares slide after guidance cut

Labour hire and maintenance group Programmed has cut its earnings guidance by 20 per cent due to a further decline in its marine business revenues.

Shares in Programmed Maintenance Services have slid more than 10 per cent after the labour hire and maintenance group slashed its earnings guidance for the current financial year.

The company now expects earnings before interest, tax, depreciation and amortisation (EBITDA) in the year to March 31 to be about $100 million, down from its previous forecast of $120 million.

"The short term revenue growth in its staffing business will now not offset the steep decline in the marine business. The net reduction in revenue will, therefore, lead to lower earnings," the company said in a statement.

Programmed made a $98 million loss in 2015/16 and has seen its marine business revenues slide 80 per cent in two years on the back of a slump in oil prices and completion of three large LNG projects.

The company said it will incur an additional charge of $7 million in 2016/17 due to further job cuts in the marine business.

Programmed shares dropped as much as 22 per cent on the news, and closed at $1.655, down 25 cents, or 13 per cent.