7th Jun 2016 07:18
LONDON (Alliance News) - Electrical components company Dewhurst PLC on Tuesday posted a sharp drop in pretax profit for its first half as tough conditions in its end markets hit sales.
Dewhurst said its pretax profit for the six months to the end of March fell 24% year-on-year to GBP1.7 million from GBP2.2 million, as revenue declined 6.0% to GBP21.3 million from GBP22.8 million.
Dewhurst, which makes lift and rail components and keypads used on ATMs, had warned in February it would deliver materially lower profit and revenue for the year to the end of September following a drop in demand in the UK business.
On Tuesday, Dewhurst said its performance in the first quarter had been particularly weak and, while some recovery emerged in the second quarter, "confidence remains somewhat fragile".
The group said its lift businesses in the UK and Australia were generally weaker in the first half, while North American sales rose, but keypad sales were "well down" and it suffered from an adverse change in its sales mix.
The company said demand thus far in the second half has continued broadly in line with the second quarter. Dewhurst added there is a "great deal of uncertainty in the political and economic situation and there are outcomes that might have a positive or negative impact on the business", noting public sector spending constraints are unlikely to ease any time soon and customer concerns on pricing will not diminish.
The firm will pay a flat interim dividend of 3.0 pence.
Dewhurst shares were flat at 400.00p early Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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