Spice expects to miss profit target

Leeds-based Spice, which has supply and distribution divisions, said it was repositioning the group.

It also said it was reviewing its public facing distribution business, which comprises the group's telecoms, facilities and gas units.

It said the gas business, which remains unprofitable due to loss making contracts and is expected to report a sizeable loss this year, was under particularly close scrutiny.

Spice said the gas unit and the utilities facing distribution business, which includes electricity and water, had been hit by the bad weather and bidding activity.

As a result, Spice expects profit before tax, amortisation and exceptional items to be below the board's previous expectations, but slightly higher than the 32.3m recorded in 2009.

Earlier this month, Spice announced the sudden departure of chief executive Simon Rigby, the entrepreneur who built the utilities support services group from a single contract.

The Leeds-based group insisted Mr Rigby's departure was his "personal decision".

He has been replaced by interim chief executive Martin Towers until a permanent successor is found.