First-half profits improve 23% to £3.7m at Unidare

Mr Jack Hayes: priority remains to improve return on assets.

Pre-Tax profits at Unidare, the engineering group, have increased by 23 per cent, to £3.7 million in the six months to the end of March. The rise in profitability reflected a 21 per cent increase in turnover, which grew to £70.9 million. Earnings per share were 12.9p, an increase of 21 per cent and the board of the engineering group has decided to pay an interim dividend of 4.8p.

Chairman, Mr Jack Hayes said the company's priority "continues to be to improve the returns from the assets we own. Our capital investment programme is well advanced. Realising the planned benefits from the programme is a key element of our endeavour."

At the same time, the company's debt-free balance sheet gave it capacity to make further investments in growth opportunities for its core business, Mr Hayes said. "As regards the year as a whole, we expect to report another year of growth."

In the six-month period to March 31st last, the engineering supplies distribution division recorded a 25 per cent increase in operating profits, to £2.62 million, while the specialised engineering products division recorded a 10 per cent increase in operating profits, to £1.68 million.

Sales at Nasco, a wholesaler of welding and safety products in the US, were at similar levels to last year but the operating margin continued to improve. The company has commenced selling into Mexico.

Oerlikon, a distributor of welding electrodes, wire, fluxes and other welding products in Britain and Ireland, increased sales and margins in both markets. Eland, a wholesaler of welding accessories and related electrical cable in Britain, also experienced growth in sales and margins. Daalderop, a Dutch producer of water heaters and heating components, reported sales growth while operating margins remained strong.

Centrajet, a British-based manufacturer of a range of gas cutting nozzles and regulators, had a difficult first half, with sales to export markets depressed because of the strength of sterling and the Asian crisis.

Southborough, the Irish-based manufacturer of metal enclosures and electronic assemblies for the computer, telecommunications and medical industries, experienced an increase in sales and profits and its order book remained strong, the company said.