By Michael Susin
Eneraqua Technologies experienced a significant drop in its shares following a warning that its fiscal 2024 performance would be affected by project delays caused by uncertainties surrounding potential changes to nitrate emissions regulations outlined by the U.K. government.
As of 07:24 GMT, shares had plummeted by 24% to 72.5 pence, a decrease of 22.5 pence.
The supplier of energy and water efficiency products announced on Thursday that it anticipates earnings before interest, taxes, depreciation, and amortization for fiscal 2024 to fall well below market expectations, which were set at £8.8 million ($11.2 million).
It further stated that the implementation of net nutrient neutrality rules is projected to have a negative impact of up to GBP2 million on earnings before interest, taxes, depreciation, and amortization for the current fiscal year.
Despite this setback, the board emphasized that the company’s prospects remain strong, supported by several favorable factors in the industry.
“Prior to the government announcement, our performance was in line with management expectations for the year. We do not anticipate that the actions of one government will significantly affect our long-term prospects,” the company stated.
