Printed circuit board manufacturer, maintenance and services provider Kode International Plc, of Swindon, Wiltshire, has made a pre-tax loss of UKP515,000 against a profit of UKP710,000 last time in interim results that saw a largely static turnover of UKP12.3m. The group’s poor performance was mirrored in its share price, plummeting 37 pence to 38p, a fall 49.3%. The group attributes the poor results to several factors. Firstly, the group’s computer services business, DCM Services, was hit hard by the sudden fall in personal computer prices in the second half of last year. This reverberated through the third party networked personal computer maintenance market, DCM’s core business. Kode was forced into drastic action and this resulted in exceptional charges of UKP350,000, UKP150,000 for reorganisation, the rest for stock provisions. Secondly, Kam Circuits UK Ltd, Kode’s printed circuit board manufacturer, got off to a slow start with order levels below expectation; although profits, not quoted, were up slightly on last time. The group is, however, confident that export sales will continue to grow and expects further progress in this area in the second half year. Kamtronics in the Far East also underwent difficulties with severely depressed margins, because the Tianjin suppliers in China failed to meet deadlines. Kamtronics markets printed circuit boards manufactured in the Far East. It briefly moved to Malaysian and Taiwanese suppliers but is now satisfied with the Tianjin plant. According to the company, this setback severely impacted its profitability in the first four months of the year. Kode can see ‘green shoots of recovery,’ as the troubled Chinese plant is now meeting orders. Nevertheless, the general mood in the Kode camp remains understandably subdued and chief executive, Stephen Day is cautious over prospects in the short term.
