FKI Plc has turned in yet another drop in profits. The electrical engineering and electronic components manufacturer has suffered from exposure to the hard-hit UK and US markets that represent 87% of its business. Pre-tax profits fell 24% to UKP30.5m, with sales down by 4.8% at 739.1m. Net losses on the sale of business sectors amounted to UKP9m, but the disposal of other companies contributed UKP14m to a reduction in net debt. Borrowing was reduced by 29% to UKP60m. The company’s reorganisation programme is now said to be largely complete, the strategy having been to concentrate on core businesses. Nevertheless, a selective acquisition procedure is to be pursued to increase the group’s presence in countries where it is under-represented or where benefits could be gained from broadening the availability of certain product ranges and services. The disposal of operations not fitting in with this aim will continue, however. Demand for products with shorter lead times apparently stabilised, and order intake increased in the last quarter. Therefore, chairman Jeff Whalley, optimistically believes that, while the timing of any significant economic improvement remains impossible to predict, the rationalisation measures taken over the past year will put FKI in a stronger position to capitalise on the elusive economic recovery.
