Crane hire company Baldwins Industrial Services has warned of near-£8 million full year losses in its latest gloomy trading statements and says it is talking to 'funders to put the group on a more stable long-term financial footing', writes James Crux.

Shares in fully listed Baldwins (BLD) have fallen more than 26 per cent to 14p today on the new warning from chairman and chief executive Richard Baldwin. He says sales for the year to March 2002 will be about £7 million up on 2000-01 at £83.3 million but the estimated losses has risen to 'not less than £7.6 million' – the precise figures will be reported in July.

Sales were in line with management's expectations, but trading has continued to disappoint, especially in the United States where Baldwins lost £3.4 million at operating level. Richard Baldwin also flags up a £5.9 million net interest charge for the year, and says year-end borrowings were a worrying £84 million.

In an attempt to trim borrowing, a number of cranes were sold, which caused a £2.9 million loss on fixed asset disposals. Refinancing talks are 'at an advanced stage' and the Berkshire-based outfit says it will provide the market with more details when it publishes its figures later in the summer.

Baldwins' investors have suffered in recent times. In February, house broker ING Barings dramatically increased its forecast loss from £500,000 to £4.5 million on another profit warning.

Last December, the company's interim figures showed a pre-tax profit collapse from £2.5 million to £500,000 on sales up 18 per cent at £41.3 million. Only five months earlier, after last July's 2001 final figures, the picture appeared vastly different, with ING looking for a £7 million pre-tax profit and setting a 205p price target!

On today's news, the shares slumped 5p to 14p. Investors have seen their shares plummet from a 186p 52-week high amid successive profit warnings over the past year and analysts say this is definitely one to avoid.