K3 Capital warns on profits following Brexit-related delays

5th Apr 2019 11:49

(Sharecast News) - Sales specialist K3 Capital warned investors on Friday that earnings in its current trading year would be lower than expected after a series of "significant" transactions in its corporate finance unit were delayed as a result of Brexit-related uncertainty.K3 noted that while the transactions were still progressing, the current economic and political climate in the UK meant the firm was unable to wrap them up on schedule. K3 also went as far as to say that it may not be able to close the deals until the end of the year.As a result, the AIM-listed group re-forecast its full-year EBITDA for somewhere in the range of £4.5m to £5m - significantly lower than the £7.4m originally expected.Chief executive John Rigby said: "From an operational perspective, the group has continued to perform well against a backdrop of significant uncertainty in the UK economy. Four out of our five income streams across the group will see strong growth in the period and it is simply issues which are outside of our control, with a small number of high-value transactions slipping to the right, which will result in what we see as a temporary dip in profitability."This year has shown us that despite unprecedented uncertainty within the UK economy, our core business has grown well and we will end FY19 with a stronger core business which is better placed to deliver on its growth strategy."As of 1150 BST, K3 shares had tumbled 15.94% to 134.50p.