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Lycopodium (ASX:LYL) revises FY20 guidance after COVID-19 shakeup

Industrial
ASX:LYL      MCAP $399.3M
01 June 2020 11:10 (AEDT)

Management consulting company, Lycopodium (LYL) has provided its revised guidance for the financial year ending June 30 2020.

The company’s new guidance estimated a net profit after tax (NPAT) of approximately $11.5 million for the financial year. Its previous guidance estimated an NPAT of approximately $14.1 million, and $220 million in revenue.

Like countless other companies, Lycopodium had to update its guidance after the COVID-19 pandemic started impacting global economies. The company first announced that it would withdraw and revise its guidance on March 25 2020.

At the time, Lycopodium described COVID-19 as “a developing issue, which could potentially impact results.” Only two months on, the optimistic description is a serious understatement of the damage which the virus has caused.

Lycopodium’s Managing Director, Peter De Leo, commented on how the pandemic has impacted the company’s operations.

“Whilst the progress of our projects in delivery has generally been unaffected, as was anticipated, COVID-19 has significantly impacted new opportunities coming to market, with projects delayed or suspended.

“We are continuing to work with our people and clients to maintain business continuity and meet our current project obligations.

“As always, the health and wellbeing of our people, clients and partners, and the broader communities in which we operate, remains our priority during this unprecedented time,” he said.

Lycopodium’s internal taskforce has responded to the crisis by implementing measures recommended by governments and health authorities. This has applied to the various locations all over the globe in which the company operates.

The company expects that measures implemented to prevent further spread will continue to limit economic activity for some time to come.

Lycopodium has dropped 2.46 per cent and shares are trading for $4.75 each at 10:33 am AEST.

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