18th Nov 2013 11:19
LONDON (Alliance News) - Latchways PLC Monday reported an increase in pretax profit and revenue for the first half, as it increased its interim dividend by 10%.
The company, which makes workplace fall-prevention systems for the roofing and utilities sectors, posted a 12% increase in pretax profit to GBP4.0 million, up from GBP3.6 million a year earlier, while revenue crept to GBP19.7 million from GBP18.8 million in 2012.
The company largest division, safety products, recorded an increase in revenue of GBP15.8 million compared with GBP15.1 million in 2012, with operating profits of GBP3.7 million, up from GBP3.3 million a year earlier.
Within the division, the company's self-retracting lifelines (SRL) device made significant progress with revenues up 93% on last year boosted by strong sales to the wind energy sector.
The company's Wingrip aircraft-maintenance fall protection solution saw revenue increase 3%.
However, the company warned about a dearth of commercial construction activity in the UK and Europe and said lower utility and telecom company spending had reduced revenue from its Vertical fall-protection products in the first half by 47%. It said this was mainly due to the absence of two telecom-related projects this year.
Overall, Safety Products accounted for 75% of group revenues and 91% of operating profits in the period, Latchways said.
The safety services division saw revenues increase 3% reflecting initial revenues from long term refurbishment projects, together with "tight control" of operating costs.
The board proposed a 10% increase in the interim dividend to 12.10 pence, up from 11.0 pence
The stock was trading at 1,330.00 pence Monday morning, down 77.50 pence or 5.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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