Telspec Plc, the communications equipment makers, has returned to profits after a period last year when the company lost its way. In the six months to June 30, it turned a net loss of 4.3m pounds into a profit of 1.1m pounds on revenue which declined by 8% to 29.7m pounds. Chairman Fred Hackett-Jones said: Focus on working capital has resulted in a strengthening of the balance sheet and we have reduced gearing from 91% at 31 December 1996 to 37% at 30 June 1997. Demands for the group’s products remains strong in all markets despite increasing competition and we believe that the changes implemented during 1997 position us well to respond successfully. The company is getting over a period when it became seriously over-extended after rapid growth and plunged into the red last year – and was forced to change senior management and undertake a major reorganization which has led to the current recovery. The fall in revenue is attributed to massive competition in the field of ISDN terminal products. Now Hackettt-Jones sees the task in the second half is to establish the product and technology basis for the group’s longer term strategy.
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