27 August 2015 – interim results

In the six months to 30 June, sales from continuing operations were slightly higher than the same period in 2014 as these rose to £39.5m from £38.9m.  However, underlying pre-tax profit on the same basis was lower at £1.3m (2014: 1.7m) with earnings per share declining to 5.1p (2014: 7.5p).  Although the group’s packaging machinery operations performed well in the first half, the instrumentation and tobacco machinery division reported lower sales and profits due to more challenging market conditions.  The strength of sterling has also adversely affected the business.  Action has been taken to reduce costs in the business whilst expenditure will also be deferred where appropriate.  As a sign of confidence in the future, the company maintained the interim dividend at 2.5p and with an improved performance in both divisions expected in the second half we maintain our recommendation of BUY.