Silvermines exposed in south east Asia

Silvermines is being affected by the problems in the south east Asian economies. The company says: "It is not believed by the board that the performance of other divisions will compensate for the trading shortfall experienced in south east Asia this year."

Silvermines' group managing director, Mr Clem Jansen, said the company was burdened by the "double whammy" effect of falling currencies in south east Asian economies and the strength of sterling. Nevertheless, despite these problems, Silvermines remains confident about its expansion in the region. It is still an area of high growth potential for its CCTV (close circuit TV) products, he said. Silvermines will remain active in the region and will defend its market share. "We will be more aggressive. We will help our customers with letters of credit, with reduced prices". While the results from its operation in Thailand, Malaysia, Singapore, Indonesia and the Philippines were ahead in the first half, the collapse in these currencies has adversely affected CCTV and building automation businesses in the second half. South Korea, which provided good business in the first nine months and a £400,000 order in September, has since slumped.