Densitron warns of drop in 1993 profits

Click to follow
DENSITRON International, a manufacturer and distributor of electronic components, yesterday issued a profits warning for 1993, writes Diane Coyle.

The company said the results were unlikely to match 1992's pre- tax profits of pounds 1m on turnover of pounds 41m. The shares fell 8p to 32p.

Densitron does not have a current stockbroker, and is notifying all shareholders directly about its trading prospects. It reported that sales were strong in Europe and Asia but declined in the US, which had represented 25 per cent of the previous year's turnover.

Another reason for issuing the warning was that some large contracts due in the last quarter of 1993 had slipped into the current year. The company had expected them to boost second-half results.

On a brighter note, Densitron said its microwave division, which makes components for communications systems, was back in profit.

One analyst commented: 'It is a somewhat accident-prone company. This is a not untypical statement. In earlier times they would not even have bothered to make it.'

The statement concludes: 'Prospects look stronger in 1994.'