Building services provider Johns Lyng Group has defended its market disclosure after a 33% share price slump triggered a query from the Australian Securities Exchange.

The company’s shares dropped as low as $2.36 and closed a third lower at $2.53 after it released interim results and downgraded the full-year forecast on February 25.

Share price moves of more than 10% are an automatic trigger for the ASX to check for any breach of rules requiring continuous disclosure of price-sensitive information.  

Johns Lyng says it reviews analyst earnings estimates to form a view of market consensus and had looked at the variance between the updated full-year guidance and market expectations before releasing the results.

“The company did not consider the variances to be material, therefore, no disclosure was made prior to the results announcements,” it says.

The company reported weaker first-half revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) amid “challenging” conditions.

It cut its full-year group EBITDA outlook to $126.5 million, down 4.5% on previous guidance, while sales guidance was lowered 5% to $1.167 billion.

“JLG confirms that it has adequate and effective arrangements in place to disclose promptly and without delay any information concerning it that a reasonable person would expect to have a material effect on the price or value of its securities,” the company said.