Invensys shares lose fifth of value after delays

Engineering and technology group Invensys saw its shares slump 19 per cent yesterday after it warned a series of project delays would hit its full-year profits.

The FTSE 250 company said problems with a small number of contracts at its Invensys Rail division and three deals related to nuclear reactors in China would cost the firm £60 million.

The firm, which employs some 3,000 people in the UK out of a total workforce of 20,000, said it now expects its operating profits for the full year to be “significantly” below last year’s £262m.

Invensys develops technologies for a wide range of sectors including mass transit rail networks, oil refineries and air conditioning.

It said the issues with its contracts covering eight nuclear reactors in China emerged after a review of the engineering requirements and associated costs was conducted. The review concluded that there will be a delay in delivery and the need for additional engineering to be carried out on one of the contracts.