Hills Limited (ASX:HIL)
has downwardly revised full year guidance due to a downturn in spending and lower margins.
The company now expects underlying profit of $11 million to $14 million down from previous guidance of $18.5 million to $19.5 million.
In an announcement to the ASX this morning, Hills says that continued delays in project starts and project deferrals across the construction, health and mining sectors as well as lower Government spending and the decline in the Aussie dollar have started to hit the bottom line.
The downward revision follows a flat result for the first six months of the year which saw the stock price instantly tumble from $1.33 to $0.90.
The share price is now languishing around the 80 cent mark. Hills reported a net profit of $9.2 million for the first six months of the 2015 financial year.