16th Sep 2013 10:00
LONDON (Alliance News) - Corac Group PLC Monday said its half-year pretax loss narrowed after a growing order book saw an increase in revenue and gross profit margin.
Corac is an engineering company that, among other businesses, provides air purification and oxygen generation equipment for submarines. It said its pretax loss narrowed to GBP2.4 million for the six months to June 30, compared with a GBP3.8 million pretax loss for the corresponding period the year prior.
The narrowing in losses came about after gross profit margin increased as a result of revenue increases being accompanies by a slower increase in the cost of sales. Revenue nearly doubled to GBP8.3 million, a 96% increase, while the cost of sales increased just 88%.
Corac said its order book is growing after a major contract was signed between its Corac Energy Technologies business and BP PLC for offshore gas compression, while its Atmosphere Control International business strengthened ties with UK Government agencies, and its Hunt Graham business won two contracts worth a total of GBP2.4 million for heat-exchange projects with global partners.
"The board is pleased with the progress shown by the operating companies in the first six months of the year [and] believes the real value of the group is not reflected in the current share price, and is committed to closing this gap," Chief Executive Phil Carmell said in a statement.
Corac shares were Monday morning quoted at 13.10 pence, up 0.48 pence, or 3.8%.
By Samuel Agini; [email protected]; @samuelagini
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