UK ELECTRONICS firm Armour Group yesterday reported a rise in first-half sales, but a drop in profits from the same time last year.
The company, which focuses on home and business audio systems, reported sales of £16.6m in the six months to the end of February – up from £16m last year.
But profit before interest and tax fell to £100,000 – just half of the 2013 figure.
The firm said cash from operating activities fell to £800,000, down from £1.1m last year, while net debt increased to £7.8m from £7.1m.
Chief executive George Dexter said: "The group has had a busy six months with a considerable amount of corporate activity and continuing progress being made in our day to day trading activities.
“Armour Home is progressing on its recovery path... However, in the first six months of the year its profits have been impacted by foreign exchange losses on its forward hedging contracts.”
Dexter said the firm’s balance was healthier than it looked as it sold Armour Automotive to AAMP of America at the end of March.
“While this sale is considered in this interim statement as a post balance sheet event, it nonetheless realised a £3m disposal profit and turned the group’s net debt position into net cash of £3m,” he said.