27th Aug 2015 08:50
LONDON (Alliance News) - Tobacco machinery and control instruments manufacturer Molins PLC on Thursday said its first-half results were in line with its expectations, as pretax profit fell amid continued tough trading conditions.
Molins said its pretax profit for the half was down to GBP400,000 from GBP1.0 million a year earlier, while revenue was broadly flat at GBP39.5 million against GBP38.9 million.
The group said it saw continued positive momentum in its packaging machinery business, with strong growth in the first half and a robust order book in place for the second. But the company said its instrumentation and tobacco machinery unit has continued to take a hit from tough trading conditions in key markets, hit by declining activity and pressures from the strength of sterling against the euro.
Molins said it expects both of its divisions to produce better performances in the second half and said its results will be weighted to the last six months.
It will pay a flat interim dividend of 2.5 pence per share.
"The group's results for the first half of the year are in line with management expectations. Trading in the packaging machinery division is considerably ahead of the same period last year, whilst the tough market conditions have impacted our instrumentation and tobacco machinery activities," said Chief Executive Dick Hunter.
"Looking ahead, as in previous years, the group's full-year trading performance will be significantly weighted towards the second half, and the group remains on course to meet market expectations. We continue to focus on our growth initiatives, including further development, both organically and acquisitively, within our core market sectors of nutrition, beverages, healthcare, pharmaceutical and tobacco," Hunter added.
Molins shares were up 4.5% to 77.85 pence on Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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