Building and engineering products group, Alumasc, saw profits slump after serious problems at its engineering arm hit full year results.
Underlying profit before tax came in at £1.6m in the year to the end of June, compared with £4.3m the year before.
Chairman John McColl called it "a deeply disappointing result", albeit in line with recent expectations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Revenues from engineering products were steady at £36.8m but the division slumped to an operating loss of £0.8m after serious operational issues at Alumasc Precision Components.
This company said "an erosion of manufacturing disciplines and the mispricing of certain work" had led to lower gross margins in the business during the year.
The group has undergone a restructuring with the engineering division now operating as an independent and self-sufficient entity, with a full board of directors responsible to the group board for its recovery and sustained profitability.
It was different story at the firm's building products arm, where revenues were up 5% to £74.9m with operating profit up 12% to £4.4m.
This came despite the well-publicised decline in UK construction activity and reflected growth in export, roofing & walling, and construction product sales, Alumasc said.
A proposed final dividend of 1.0p took the total for the year of 2.0p, with the company saying it intended to restore "meaningful dividend payments" underlying earnings had grown to cover this.
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
-
What is the S&P 500?The S&P 500 is one of the world’s most popular stock market indices and has almost tripled in value over the last decade. But what is the S&P 500, and which companies does it contain?
