Specialist Energy Group eyes strong second half

Specialist Energy Group said it was back in the black in the first half and said it expected substantial improvement in the back end of the year.

The specialist engineering group said profit before tax was £0.3m, up from a loss of £0.2m the previous year.

Revenues in the first half were off slightly at £14.3m, down from from £14.4m the year before.

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Orders were down to £15.9m from £16.5m, but the firm said further strong contract wins in July saw order intake rise to £20.3m to the end of July.

This compared to £18.8m in the first half of 2011 and included a record £2.7m oil and gas related contract secured by its boiler pump company Hayward Tyler, in July.

Chief Executive Ewan Lloyd-Baker said the company expected to see a substantial improvement in performance in the second half.

This would be driven in part by the elimination of loss making contracts in the manufacturing division and savings from the restructuring of the Luton operations, he said.

A significantly strengthened balance sheet and a stronger fourth quarter 2012 performance by the aftermarket business, which has been held back by financial constraints prior to the new financing, would also drive figures up, he added.

"These changes combined with an improving outlook mean that the Board therefore looks to the future with increased confidence," Lloyd-Baker said.