27th Mar 2014 14:41
LONDON (Alliance News) - Industrial engineering products company SWP Group PLC Thursday saw pretax profit rise in the half-year ended December 31, 2013, as revenue benefited from the improving construction sector.
SWP posted a pretax profit of GBP624,000, up from GBP129,000 in the previous year, as revenue rose to GBP9.9 million from GBP8.9 million, and operating expenses dropped. The company also said that an upturn in confidence level and economic recovery had led to an increase in orders in the new financial year.
"The construction sector is often one of the last to recover after economic recession but following such a pronounced lack of infrastructure projects market activity has rebounded faster than could have been envisaged," the company said in a statement.
In SWP's Ulva business, which it acquired in November 2007, the company saw revenue in line with expectations, and somewhat ahead of the previous year, as delayed construction projects were carried through from the end of the financial year 2013.
In the company's Fullflow division, improved market sentiment boosted results, and it saw average order size increase in the UK. SWP noted that the severe flooding in the UK during January and February drew focus to the advantage of rainwater management systems, like those made by Fullflow.
The company's Plasflow business, which provides fabrications for Fullflow, struggled as increased levels of activity at Fullflow led to "some degree of indigestion" in its business. However, these issues have been resolved via reorganisation, the company said.
The company expects trading in its second-half to be similar to its first-half performance. It expects Fullflow to perform well in France, and hopes to see improved results at Plasflow. It expects its loss making company, Crescent of Cambridge, to be restored to profit by the end of the year, as it builds its order book.
Shares in SWP were trading up 3.9% at 10.00 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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