APR Energy issues 'significant' profit warning

Shares in APR Energy fizzled lower on Friday morning after the power solutions provider issued a profit warning.

Due to the expiration of a project in Libya the company warned that 2014 full-year net income would be "significantly below current market expectations".

APR said the resulting demobilisation of power generating assets from its Libya project meant it was likely to take a number of reserves for receivables.

Management also warned that there were likely to be significant non-cash impairment charges as it reassesses the value of intangible assets and goodwill on its balance sheet.

Directors are conducting a review of reserves and said they will provide a further update to the market as soon as possible.

After a February warning that it may not meet certain financial covenants associated with its bank facility, the company added that discussions with its banks were progressing well.