Make your money go further for just 25p per day

Lakehouse (LAKE) -  another profit warning, highlights the perils of acquisition driven growth

17/05/2016 · Lakehouse PLC (LAKE) 

The asset and energy support services group, that has already generated a decade’s worth of news (unfortunately mostly negative) since listing only 14 months ago has come out with yet another profit warning. Before people jump on the AIM bandwagon we should highlight that LAKE is on the Main Market! The latest report highlights to us once again the perils of a business going on an acquisition spree yet failing to keep a tight control on management of costs in existing activities. 

The interim results for the six months from 1 October 2015 to 31 March 2016 reflect a period when the Group’s Regeneration division (the largest part of the business) faced more difficult trading conditions than expected, apparently as a result of reduced client budgets and changes in procurement structures. In response to this, management focused on expanding the division’s external work offering, particularly roofing. While the business has had “considerable success in winning new work…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login


Previous article Next article

DON'T MISS OUT!

Get top investment ideas to help safeguard and grow your wealth.

Invaluable insight from the exciting world of smaller companies.

REGISTER FREE

DON'T MISS OUT ON OUR PREMIUM CONTENT

Become a champion investor for just £90 a year. Benefit from our high performing portfolios:

START FREE TRIAL

More on Lakehouse PLC

AIM newcomers May 2017 - beautifully simple and simply beautiful!

12/06/2017 · Company Insights
AIM continued to perform strongly in May 2017 attracting several rapidly growing new arrivals. We cover…

These high yielding small caps could offer plenty of delightful income in 2017 and beyond

23/12/2016 · Company Insights
We are mightily impressed with the attractive dividend income available from many smaller quoted companies. Our…

More Company Insights

Elderly challenges | Demotion | Australian boost

21/11/2024 · Churchill China · CVS Group · Renold · Tracsis

Bonkers Bargains: poised to recover with a new CEO

20/11/2024 · James Cropper

Improving returns | Questionable business models

Sign-up to our free email updates

SIGN UP