Loyal Serco (LON:SRP) backers were again left nursing their wounds following the after-hours revelation that it plans to tap the equity market for funds.
The troubled outsourcing group issued yet another profit warning, admitting that 2014 has been more challenging than expected.
It said it would be kicking off talks with shareholders about a placing of shares to bolster its creaking balance sheet.
The news triggered an 18% slump from the share price to 332p.
“It has now become evident in the light of recent performance that we may need to reassess the level of risk implicit in the assumptions underlying our forecasts,” the company said in a stock exchange statement after the market closed on Monday.
“This may in turn require a material downward revision to expectations, and for us to review the appropriateness of our financing position. We will, therefore, be consulting with shareholders regarding the possibility of strengthening the balance sheet through an equity placing.”