POWER protection company Chloride Group yesterday posted a 16 per cent drop in adjusted pre-tax profits for the half year, but said it was confident about its prospects for the year.
The firm, which protects against power shortages at Heathrow Airport’s Terminal 5 and Arsenal’s Emirates stadium, posted adjusted pre-tax profit of £16.2m and said total sales were broadly flat at £152.7m in the six months ended 30 September.
Product sales were down 6.3 per cent at £94.2m from £100.6m a year earlier, despite a robust performance in the group’s energy and infrastructure division which offset weakness in the smaller capacity market.
The group said service sales were up by 13.1 per cent at £58.5m.
Chief executive Tim Cobbold said: “We enter the second half with good order book coverage, and with trading in with expectations. This background gives us confidence in the full outlook for the business.”
Chloride said its current restructuring plan, which it expects to incur costs of £6m for the full year, will generate savings of £1.5m in the full year, and £2.5m a year thereafter.
The group increased its interim dividend by three per cent to 1.9p a share.
Chloride shares yesterday lifted by 0.3 per cent to 162p.