Powerscreen International has further delayed its financial results. The company now says they will be announced on September 22nd. At that stage, investors will be able to assess the troubled company's performance in the 12 month period to the end of March 1998. Powerscreen had been expected to issue the figures this month, having indicated it was likely to record a pre-tax loss of £65 million. In a statement yesterday, Powerscreen said that, despite its difficulties, it is continuing to trade in line with expectations. "Management continues to be confident about the prospects for the current year ahead," the statement added.
Justifying the long delay in issuing its results last June, Powerscreen's company secretary, Mr Andrew Harris, said its auditors, KPMG, had been diverted because of "the Matbro debacle". At that time he indicated the results would be made available at the end of July.
Since then the group has sold its Geith International subsidiary to its management for more than £8 million. That sale is part of Powerscreen management's strategy of concentrating on its screening and crushing divisions, following the discovery earlier this year of massive financial irregularities at Matbro, one of the companies within its materials handling division. Most of the other companies in that division will also be sold as part of the new strategy, including CPV in Monaghan which manufactures stainless steel for the chemical and liquid food transport industries.
Some analysts believe that, after a turbulent year, Powerscreen is beginning to turn the corner. NCB Stockbrokers believes its planned disposal programme could generate up to £60 million sterling for the group. NCB stated that a successful completion of this programme would virtually eliminate debt and financial risk from an investors' standpoint. It also noted that a new management team has been put in place.
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