Heating solutions provider Inditherm Plc (LSE: IDM) has released a statement cooling off its growth plans set for 2009.
The company announced in March that it was poised to maintain the same rate of growth in the Medical sector as last year, and increase sales in the Industrial sector, contingent on the conversion of significant prospects.
Now however it appears these growth plans will have to be put off as sales in the Medical sector have grown by only 5%. The Industrial sector has also not lived up to expectations. Though the company has not been forced to cancel any of its existing projects, “decision making processes” have been impacted by the ongoing recession, and as a result, many contract negotiations are progressing much slower than anticipated. Also as a result of the slower than expected revenues, Inditherm announced that it would be laying off approximately 20% of its workforce and would sharpen its focus on the medical sector.
Cash balances currently stand at £2.6 million.
Inditherm fell 13.5% on the trading update, reversing a sharp spike in share price on the heels of the ambitious growth plans announced in March.
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