A dearth of big projects saw SWP Group, an insulation and drainage engineer, slide into the red in the second half of 2011.
Revenue for the period fell from £12.7m to £9m year-on-year, while a profit of £1.2m turned to a loss of £0.081m. Earnings per share fell from 0.42p to -0.04p.
The group's Fullflow brand has been hit by the travails of the construction sector.
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"Our markets in Continental Europe have, like the UK, struggled as a consequence of low demand, competitive pressures and a dearth of large scale infrastructure projects where Fullflow tends to thrive," Chairman Alan Walker said.
In the Polymer Membrane division, the group's Ulva non-metallic cladding brand had a "below par" second half of 2011, due to elongated gaps between the conclusion and commencement of international projects.
Judging by trading so far in 2012, both Fullflow and Ulva will largely tread water until conditions conducive to an increase in project commissions returns.
In the case of Fullflow, the company thinks signs of economic growth will lead to a revival in public spending levels and greater availability for funding of infrastructure projects.
Walker is a bit more optimistic about the prospects for Ulva, as the pipeline of future international projects where Ulvashield insulation is specified increases month on month. Specifications from the oil and gas majors remain at encouraging levels, Walker revealed.
"Strategically our focus has always been fixed very firmly on the achievement of medium to long-term growth and while we do not expect either the general economic environment or conditions in our specific markets to exhibit much improvement in the short term we remain confident that the plans we have for the future ongoing organic development of the group are those which will deliver profitable growth for shareholders over time," Walker concluded.
Cash at the end of the period was £1.46m, the same amount as that date the previous year.
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