22nd Nov 2018 13:33
LONDON (Alliance News) - FW Thorpe PLC on Thursday said it expects to report a year-on-year drop in operating profit for the first half of 2019 financial year due to a downturn in the UK lighting industry.
The stock was trading 27% lower on Thursday at 211.00 pence a share.
Ahead of its annual general meeting, the professional lighting systems manufacturer said orders for its main business, Thorlux Lighting, were slow in the three months to September-end but have started to recover in October and November.
Whilst other parts of the company continued to perform well, FW Thorpe said it now expects the interim results to come in lower year-on-year, with operating profit down 10%.
"At this time, it is difficult to accurately predict second half performance, but we are unlikely to close the gap and the full year results are likely to be lower than last year," said Chairman Mike Allcock.
FW Thorpe said it has already taken mitigating steps with the closure of its Portsmouth manufacturing facility and other headcount reductions. The company expects to see these cost benefits in the second half of its financial year.
"We will continue to drive the business for the long-term in spite of the current political, economic, and market headwinds, by continuing to invest in product development and considering acquisition opportunities where appropriate," added Allcock.
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