Eurotherm Plc, the Horsham, Sussex-based industrial automation company has had a lucrative 18 months as a number of factors coincided to pull the company ahead of its rivals. There has been a return to capital investment in the paper industry, a recovery from recession in Eastern Europe and an improvement in the plastics industry, according to chairman Jack Leonard. The company has also undergone a five-year restructuring plan, which all put together has helped boost pre-tax profits for the year to October 31 by 31% to ú34.1m. Turnover was up 16% at ú195.4m. Improvement was most marked in the drives and guaging divisions. The shares were off 20 pence at 534 pence yesterday, having fallen 15 pence on Monday. This was largely as a result of profit taking ahead of results which were actually slightly ahead of many analysts’ expectations. One analyst, who asked not to be indentified, said that everything was in place for the company to continue to grow at 15% to 20% a year. A number of new products were introduced in the year and will go into full production in the current fiscal. The Series 2000 temperature controller range was enhanced, and very well received, according to chief executive Claes Hultman. The company launched a new temperature controller two months ago. The Vector AC drives power controller range was expanded during the year, as was the infra-red thickness guage range for the food packaging industry. More products are promised across all lines in the next couple of months. One acquisition was made during the year, Systems Automation & Services Inc of Charlotte, Nroth Carolina, for ú4.4m cash. It markets variable speed drives, and has contributed ú1.9m turnover and ú1.2m gross profit since it became part of the group in March. The balance sheet was strong at the year-end, and the company generated ú46.0m in cash in the period. Leonard said he was very confident of our prospects. The final dividend of 4.5 pence, when added to the interim, gives a total of 7.5 pence, which is a 36% rise on last year.
