Radamec Plc, the defence company dealing mainly in defence control systems, saw profits fall last half because of a slump in overseas business and to one large contract with a low margin. The firm’s net profit fell 8.2% while turnover increased 3.4% to UKP6m. Earnings per share fell 10% to 1.8p. The company has five divisions: Radamec Defence Systems sells defence equipment including fire control and surface to air missile systems, and accounts for 50% of group sales. The Radamec EPO division handles television and remote camera systems and manufactured the system used in the House of Commons. Radamec Microsystems is involved in surface mount technology and ceramic-based hybrid technology, while Radamec NDC produces instrumentation for working boats. Finally, Radamec REL produces industrial controls and diesel engine exhaust monitors. The divisions have had their problems: the defence business has had to compete in a tough market according to chairman Leonard Whittaker, who said that currency devaluation would have helped if the orders had been there. He said that many countries’ defence budgets were restricted and that the level of bids was higher than ever. The EPO television business has been quiet although Whittaker expects growth next year. The REL division has been hindered by the Ministry of Transport, which decided to put off annual testing on diesel vehicles until February next year. This impedes sales of its diesel engine exhaust monitors. The Microsystems division, though, has increased its business. The company paid no tax for the interim due to tax credits following bad years in 1989 and 1990, and Whittaker expects little or no tax for the current half. It raised cash to UKP410,000 from UKP127,000 last time, slashing gearing to 14.6% from 45.7%. A halfpenny dividend is being recommended.
