14th Aug 2019 12:39
(Alliance News) - Associated British Engineering PLC on Wednesday reported a widened loss for its recently ended financial due to a disappointing performance from subsidiary British Polar Engines.
For the year to the end of March, the engineering services firm recorded a pretax loss of GBP1.8 million, versus GBP582,000 loss the year before. Revenue fell to GBP1.1 million from GBP1.6 million.
Revenue from the sale of goods declined 17% to GBP773,000, while revenue from the rendering of services fell by 45% to GBP361,000.
First half operating costs rose to GBP2.6 million from GBP2.1 million the prior year, mainly due to an increase in raw materials used.
Associated British Engineering said that the trading performance for subsidiary British Polar Engines Ltd failed to meet its budget, leading to declining profit despite cost cutting and redundancies.
Following discussions with trustees of the pension fund to try and resolve longer term costs, the group has decided to write down the assets of British Polar with effect from March 31.
Associated British Engineering is now marketing the business for sale. Within the next 12 months, British Polar Engines will either be restructured, sold or cease trading.
The company has requested the London Stock Exchange that the temporary suspension of its share listing is lifted.
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