Avingtrans Plc (AVG.L), a provider of precision engineering components and services, Tuesday reported a decline in first-half pre-tax profit, hurt by reduced volume of business due to strong challenge by global market conditions.
The company's pre-tax profit for the first six months declined to GBP 417 thousands from GBP 798 thousand in the earlier year.
Avingtrans posted net loss of GBP 58 thousand or 0.2 pence per share for the period, compared to a profit of GBP602 thousand or 3.4 pence per share a year ago.
Adjusted earnings attributable to shareholders were GBP 396 thousand or 2.1 pence per share, down from GBP 750 thousand or 4.2 pence per share in the earlier year.
Revenues for the half-year declined 17% to GBP 17.53 million from GBP 21.14 million in the preceding year. The decrease was mainly due to year on year reductions at Metalcraft associated with the reduced volume of business from Siemens and Crown, pending approvals of the new SmartPoleTM product. The Industrial Products Division continues strong performance with revenues up 22% compared to last year, the company said.
Operating profit was GBP798 thousand, compared to GBP1.21 million last year.
The company stated that the withdrawal of industrial building allowances gave rise to an additional tax charge of GBP 367 thousand during the half year.
Roger McDowell, chairman commented, "The first half of the year proved challenging for the Group. However, whilst we acknowledge that conditions are likely to remain challenging, we remain confident in the robustness of the Group's core businesses and believe that actions taken and planned will enable the Group to deliver improved profitability for the year ended 31 May 2009 over the previous financial year."
AVG.L is currently trading at 38 pence on the LSE.
For comments and feedback: editorial@rttnews.com