SCEE dives on profit warning

Shares in Southern Cross Electrical Engineering (SCEE) took a dive after the company warned it would not be profitable in the second half.

The company blamed the downgrade on lower than expected revenue and margins because the scheduled execution of work on a major project was slower than previously forecast.

The contractor also said its full-year result was still uncertain.

"Full-year NPAT continues to remain uncertain at this point in time and is dependent on the outcome of this review, winning and timing of award and execution of future orders, progress of current projects and closing out existing commercial claims as currently forecast," SCEE said in a statement.

"In this context the board continues to believe that it is in appropriate to give definitive full-year earnings guidance at the present time."

However SCEE said its balance sheet remained strong with $34 million in cash at March 25 and an order book of $117 million on February 28.

The company said it had begun a detailed review with the aim of restructuring its operations to adjust to worsening market conditions and lower activity levels.

SCEE said its chief financial officer Chris Douglass had taken the reins as interim chief executive following the early departure of Simon High, who has left the company for family reasons after tendering his resignation in January.

Mr High will remain available to the company in an advisory capacity until a new chief executive is appointed.

SCEE, which provides electrical and instrumentation services to the resources sector, has been hurt by the slowdown in the mining and energy sectors.

Shares in SCEE were off 2.5 cents, or 6.58 per cent, to 35.5 cents at 8.40am.