Molins, which produces cigarette making equipment and packaging machinery, has reported a steep fall in pre-tax profits but insists its performance will improve in the second half.
Group sales in the six months to June 30th were £39.9m, down only slightly on the £38.8m the year before. However, underlying operating profit was just £0.8m compared to the £1.7m seen at the same point last year.
Underlying earnings per share came in at 3.6p (2011: 6.3p) while net funds at June 30th were £5.7m down from the £7.1m reported at the end of 2011.
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
On a brighter note, Molins says orders are 14% up on the prior year.
Chief Executive Dick Hunter commented: "As indicated previously, group trading performance will be strongly second half weighted and the board's expectation of performance for the full year remains unchanged.
The market was not impressed however; at 10:11, the stock had fallen 12.6%.
BS
