Shares plunged 19.8% to close at 51.25p following the company’s interim figures showing a loss of £1.15 billion against an £84m profit in the same period last year. Uunderlying pre-tax profits fell 40%.
It has taken a £134 million write down to cover poor decisions by previous management and warned that full-year results will be lower than current market expectations.
It has also made a provision of £200m for losses on its support services contracts. This is in addition to an £845m write-off announced in July.
Keith Cochrane, interim chief executive (pictured), who replaced Richard Howson in July, said “This is a disappointing set of results which reflects the issues we flagged in July and the additional £200m provision for our Support Services business that we have announced today.