Reading-based Unitech Plc has reported first half pre-tax profits down 29% to UKP12.3m, on sales that declined 21.5%. Unitech says the downturn in sales was mainly due to the disposal of Veeco Instruments, which trades under the name of Lamda Electronics, and Veeco Semiconductors, known as Lambda Semiconductors. Unitech acquired Veeco in the spring of 1989 and although the company had semiconductor and instruments interests, Unitech primarily wanted its power supplies division, which would enable it to expand its own core power supplies business into Japanese market. It has therefore closed the semiconductor facility – it intends to buy in seimconductor components from third parties – and the instruments division. Unitech blames its profits decline on a combination of the difficult economic environment, including recession and the Gulf War, and the strength of sterling. Although it has benefitted from its move into Japan via Veeco, the effects of a weak yen against the pound reduced reported profits by around UKP10m. However the company is due to float 950,000 shares of its Nemic Lambda KK subsidiary, acquired through Veeco, on the Tokyo over the counter market. It will raise UKP14.6m and the move will leave Unitech with a 52% stake in the company. Apart from its power supplies business, Unitech says there has been particular pressure on its connectors and special products division from a depressed car market. Connectors contribute some 30% to the group’s revenue, following power supplies at 60%. Its other business is control products.
