Industrial automation group Eurotherm Plc continued to reap the benefits of its long-running cost cutting programme in the second half and turned in profits up 36% on turnover that rose by just 2.4% when it reported in the run-up to Christmas. Chairman Jack Leonard says that the order trend was also encouraging, with orders received in the second half ahead of last year’s. Overall the European market for Eurotherm’s products has declined with the onset of deepening recession, but the company is increasing its market share, Leonard concludes. Increasing turnover is now at the top of the agenda, and after a period of rationalisation where the company trimmed its product range, it seems that Eurotherm is going to start expanding its product portfolio again: We will also consider acquisition opportunities as they arise, but these will only be pursued if there is a clear strategic gain for the group Leonard said in his statement. The company has UKP17.2m in the bank. Clear strategic gain, in this context means that the purchases will need to be a tight fit with Eurotherm’s existing products says managing director Claes Hultman, who adds the his company has not got any prospective purchases in its sights as yet. Eurotherm is trying to avoid the return to the bad old years where it was beset by its variety of scarcely-related products. Still, there comes a point where to grow the profit requires a growth in turnover, says Hultman, although he doesn’t think that Eurotherm has reached that point yet. Back in 1991, turnover per employee was UKP58,000, rising to UKP65,000 in 1992. This year the figure reached UKP76,000 and Hultman says that there will be further improvements next year, as changes are brought to the US and European divisions. The final dividend is up a penny to sixpence making a total for the year of 9.5 pence, compared with 8 pence last year.
