Astec (BSR) Plc, the Hong Kong-based computer power supply builder listed on the London Stock Exchange, has experienced an upturn in its fortunes, reporting a return to profit during the first half of 1992. Net profit was UKP1.8m compared to a loss of UKP2.9m last year. The Stourbridge, West Midlands-based company turned in pre-tax profits of UKP2.2m, compared to losses of UKP2.7m last time on turnover down 7.3% to UKP124.4m. Operating profits were UKP3.2m up from 881,000 losses last time. The company says its cash flow has been very positive during this period, its gearing ratio being 19.6% at June 28, 1992 compared with 47.8% for same time last year. The company’s Printed Circuit Board business and a small Hong Kong-based travel business were disposed of for cash, above book value, reducing debts by UKP6.6m and producing an extraordinary gain of UKP885,000. The core Power Conversion division increased sales by 1% to UKP83.1m from UKP82.3m, earning an operating profit of UKP3.5m compared to UKP300,000 last time; figures include sales from the Controls business which has been transferred from the Electronic Components Division. The company says these improvements are due to its efforts to reduce product costs and to its restructuring policies. The Electronics Components section sustained losses of UKP354,000 compared to UKP1.2m losses last time on sales down 20.4% to UKP41.3m from UKP51.9m. The decrease is due mainly to reductions in sales by the cellular telephone business, which the company says is now under scrutiny. Astec is cautiously optimistic about its over all position. It recognises that further changes are necessary and will continue to cut costs as well as introducing new products and working to strengthen its market position.
