Weeks profit fall short of expectations

The Weeks Group's profit in the year to 31 March will be less than expected, compelling the consultancy to issue a profits warning to the City this morning.

"While turnover for the year is expected to be approximately 10% ahead of that of last year, gross margins have declined as a result of a hardening of the construction market and the shortage of technical staff, which has led to the increased need for the use of more expensive subcontracted staff," the warning states.

When reporting the group's interim results, chief executive Phillip Hill told CJ the shortage of skilled UK consultants had forced Weeks to turn to South Africa, New Zealand and Australia for new staff.

In the previous full year, Weeks made a pre-tax profit of £1.2m on a turnover of £19.3m. In the six months to 30 September last year, the group delivered a 17% rise in turnover to £10.6m, but pre-tax profit was 30% lower at £354,000.