Windsor, Berkshire-based specialist engineering company Siebe Plc seems to have surprised even itself with its financial results for the year ended April 6, which are not nearly as bad as they could have been. Pre-tax profits fell 12% to UKP159m on sales up 8% at UKP1,481m. The market reacted favourably, lifting Siebe shares by 28 pence to 419 pence. The company, which last autumn spent UKP342m on the acquisition of Foxboro, Massachusetts-based process controls manufacturer Foxboro Co, boosting sales by UKP185m and profits by UKP500,000, saw gearing soar to 103% within four weeks. Now gearing has been reduced modestly to 98%. Chairman Barrie Stephens reports a cash flow of just under UKP70m, up from UKP38m last year. A disciplined cost-cutting programme has been Siebe’s saving grace, enabling it to turn Foxboro around in short order and position it for better margins, and Stephens points out that if it wasn’t for adverse exchange rates movements, profits would have come out UKP12.4m better.
