Connect Group sinks as it issues profit warning
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Shares in Connect Group (LON:CNCT) crashed by 45.19% to 28.50p, as at 1140 BST, after the distribution and logistics specialist issued a warning that trading has been extremely weak since 1st May and announced it will close part of its parcel handling business.
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Volatile trading has caused issues in the company’s core business and it is expected that intangible assets will be impaired at the end of the year. Additionally, the expected burst of sales associated with the World Cup has not come to pass, leading to disappointing sales from its distribution arm Smiths News. Dividends for the year will be significantly below last year and the Group CEO and Group CFO are both stepping down.
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