Restructured Whitecroft climbs back into profit

WHITECROFT, the recession- damaged mini-conglomerate, returned to profit in the first half, after last year's huge write-downs against its property portfolio, writes John Murray.

The group, which has been restructured by a new chief executive, Mike Derbyshire, made pounds 1.8m before tax in the six months to the end of September. Last year's restated interim figures showed a pounds 29.3m loss after a pounds 28m exceptional charge for losses on disposals and provisions against losses.

Mr Derbyshire said the results were a welcome return to profitability for the textiles to building products group. At the operating level, profits rose from pounds 870,000 to pounds 2.7m.

'We have taken some tough decisions and we believe we've got the group back in shape now, with some good businesses ready to go forward,' he said. He added that there were no plans for any further significant disposals.

Borrowings, which were pounds 36.4m at the year-end, had been reduced to pounds 30.1m at the end of September and were now at less than pounds 26m.

But Mr Derbyshire warned that trading conditions were still very difficult and that shareholders would have to wait until the year- end before the board could make a decision on whether to restore the dividend. The shares rose 5p to 77p.