Downer set to clean up

ENGINEERING group Downer EDI will provide investors with a revised full-year forecast after carrying out a review of newly acquired cleaning and catering group Spotless.

Downer yesterday said it expected to complete its review of Spotless’s business planning, budgeting and target setting by the end of the month.

The group has previously said that, excluding Spotless, it expected a full-year profit of about $190 million.

Spotless in April told investors it expected a profit of $85 million to $100 million for the same period.

The infrastructure and mining services company owns 88 per cent of Spotless after finalising its takeover in August.

In March, Downer’s shares plunged more than 20 per cent when institutional investors showed limited enthusiasm for a capital raising to help fund the $1.26 billion Spotless takeover.

Downer shares closed 1c higher yesterday at $7.06.