30th Nov 2018 16:34
LONDON (Alliance News) - Associated British Engineering PLC on Friday said it initiated a reorganisation following a decline in sales in the first half of its current financial year.
The engineering company said pretax loss of GBP342,000 in the six months to the end of September, narrowed compared to GBP377,000 loss reported for the same period a year ago, despite revenue falling to GBP498,000 from GBP666,000.
Associated British Engineering said the result was hurt by sales reduction in its main operating subsidiary British Polar Engines.
"It is a disappointment that sales have further declined and as a result and following these results the board have instituted a round of reorganisation and rationalisation within the various arms of the business," said Chairmen Colin Weinberg and Rupert Pearce Gould.
Looking ahead, Associated British Engineering anticipates that these rationalisations will produce a saving in excess of GBP150,000 in a full year.
In addition, the company said in the second half of its financial year there have been signs that sales opportunities in the spares business are increasing and it intends to work "hard" to convert these leads into firm sales.
The stock was untraded on Friday, last closing at 15.00 pence a share.
Related Shares:
A.b.engineering