Shares in Readymix slumped over 16% in Dublin today as the concrete group gave a stark profit warning - further evidence of the slowing construction market here.
The company said that although its annual results have not been finalised, it is clear that the operating profit before once-off items for 2007 will be substantially below market expectations and the operating profit achieved in 2006.
A further statement will be issued within two weeks, the brief statement added.
During the summer, Readymix reported a 50% drop in operating profit for the first six months of 2007, pressured by a slowdown in the housing sector.
Readymix's key business is the production and distribution of concrete materials in the Ireland, Northern Ireland and the UK.
"The weaker-than-expected profit outturn comes as little surprise given the backdrop of the decline in new residential construction in Ireland,' Davy analyst Robert Gardiner wrote in a research note today.
Gardiner estimated that Readymix derives around 60% of its Irish revenues from new housing construction. 'In particular, the group's concrete products, concrete block and ready-mixed concrete operations have been adversely affected,' Gardiner said.
Shares in Readymix closed down 12 cent at €1.40 in Dublin.
