SYDNEY, Dec 2 (Reuters) - Australian cleaning and catering company Spotless Group Holdings Ltd SPO.AX issued a profit warning 18 months after its initial public offering, continuing a run of private equity exits which have run into difficulty soon after listing.
In a statement to the Australian Securities Exchange before the start of trading on Wednesday, Spotless said it expects net profit to fall 10 percent in the year to June 30, 2016, compared to the 9 percent growth forecast by analysts.
"Profit growth from new business wins experienced in the second half of FY15 has slowed, reflecting tighter economic conditions and tender decisions being delayed or deferred," the statement said.
"Integration benefits and new business wins have been slower than expected".
Although the company said revenue will be "materially" higher in 2016 and the profit decline will be the result of one-off charges, the warning will revive concerns about swift private equity IPO exits following several high-profile listings that have stumbled once they became publicly traded.
On Nov. 30, electronics retailer Dick Smith Holdings Ltd DSH.AX saw its shares plunge 33 percent after issuing a profit warning two years after private equity firm Anchorage sold it. The shares closed at A$0.35 on Tuesday, having listed at A$2.20.
Spotless shares closed at A$2.20 on Tuesday, up 38 percent on their A$1.60 issue price when Pacific Equity Partners listed the firm in May last year, less than two years after buying it.