Molynx is doing good business supplying closed circuit television equipment for football grounds, motorways, and the high street.
But supplies to offices were hit, and taxable profits for the half-year to June dropped to pounds 45,000 ( pounds 1.1m). Sales increased 5 per cent to pounds 11.1m.
It was the first profit setback for Eric Walters since taking over as chairman in 1986, but he said a backlog of orders would make for a better second half.
Molynx's environmental management division, which controls buildings' temperature and electrics, suffered as cash-strapped property companies cut back.
While exports are improving, Mr Walters does not expect recovery in the UK property market until the end of 1993.
The house broker, Panmure Gordon, is forecasting pounds 1m for the year. The interim dividend is held at 1.3p.Reuse content