AJ Lucas Group (AJL) is a leading provider of both specialist infrastructure and energy services.
The group is the leading supplier of drilling services to Australia’s coal and coal seam gas (CSG) industries. It is also Australia’s largest builder of long-distance gas pipelines.
On 30 May, AJL downgraded its full year guidance and flagged asset sales in an attempt to get its debt under control.
AJL said that due to a combination of legal expenses, restructuring costs, and difficult trading conditions, it now expects an FY11 underlying EBITDA of $19 million – $21 million.
Indeed, AJL has been one of the shares to sell over the past 6 months due to these problems.
The latest guidance compares to AJL’s previous forecast of an EBITDA of $32 million – $36 million.
AJL suspended its shares from trading as it assesses various capital restructuring proposals.
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