Reporting a 6 per cent rise in full-year pre-tax profits to pounds 7.5m, Fred Grant, chairman, said: 'There is little real sign of an end to this deep-seated recession.' He said what success Adwest had achieved was largely of its own making.
A turnaround of the group's power systems division helped it to increase operating profits by 12 per cent to pounds 10.1m on sales 4 per cent ahead at pounds 127m. Earnings per share rose 5 per cent to 8.6p.
The pre-tax result was struck after pounds 577,000 of exceptional reorganisation costs. Mr Grant said: 'We believe we have gone as far as we can with cost-cutting measures, without doing lasting damage.'
However, Adwest believes there is still scope to improve return on sales and intends to concentrate on restoring operating margins to a more acceptable level.
The company has reduced its debt to net assets ratio from 38 per cent to 29 per cent.
Adwest is paying an unchanged final dividend of 5.75p a share to maintain the total at 7p.Reuse content