Cambridge-based electronic instrument group Graseby Plc said cost cuts and new products should help further growth in 1995, although some businesses, notably the technology division, were lagging. But it is still not ready to float its Graseby Andersen Inc Atlanta-based US subsidiary, citing poor stock market conditions for environmental shares in the US, as the reason. The proposed flotation was announced in March 1993. Graseby said its markets had not yet seen the full benefits of the economic upturn in the UK and the US but the cost base of its businesses had been cut significantly. Graseby reported virtually flat pre-tax profits at UKP5.3m for the first half, against UKP5.6m last year. But it says new products in its most successful areas, medical, product monitoring and environmental businesses, along with international expansion, were expected to boost growth next year. These divisions experienced a rise in turnover of 17% to UKP23.02m and profits grew by 53% to UKP5.25m. Both product monitoring and environmental divisions saw an improvement in sales in North America. The medical division’s turnover rose 4% to UKP8.5m and thanks to cost reductions, profits rose 83% to UKP1.85m; product monitoring’s turnover rose 26% to UKP11.95m, the majority of which related to the Graseby Best, a check weigher, acquired during the first half, and profits rose 69% to UKP1.97m; and the environmental division’s turnover rose 19% to UKP14.4m, with profits rising 14% to UKP1.43m helped by a good performance from the recently established European business. Medium term prospects for the group’s remaining defence-oriented businesses were improving, although short-term opportunities remained limited. The technology division’s turnover was down by UKP4.5m to UKP12.6m. Graseby will issue a statement in November with details of its third quarter performance in an effort to keep shareholders more fully aware of the company’s activity.
