Glynwed shares slip despite 30% advance
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Your support makes all the difference.ANALYSTS yesterday upgraded their forecasts for Glynwed, the West Midlands engineering group, after it revealed a 30 per cent rise in pre-tax profits for 1992. But its shares, which have outperformed the market by 10 per cent since the start of the year, fell 7p to 282p, writes Heather Connon.
Gareth Davies, chairman, attributed the rise in profits from pounds 25.5m to pounds 33.1m to cost-cutting.
'We took the view we could not wait for economic recovery,' he said. 'We have to manage the business in declining markets.'
But he held out the prospect of a recovery in the UK, where he believes the worst of the recession has passed.
Turnover fell pounds 43.5m to pounds 906.4m, largely because of lower prices for steel, aluminium and copper - which cost pounds 5m profit. Despite that, profits in the steels and engineering division rose 45 per cent to pounds 14.5m.
Glynwed also managed a 35 per cent increase in profits at its consumer businesses, which supply Aga and Rayburn kitchen ranges, but the continued depression in building products meant the division's result was only marginally ahead at pounds 9m.
One of its foundries has been closed, contributing to the pounds 3.6m (pounds 9.1m) reorganisation charge.
The tubes and fittings division reduced losses from pounds 10.8m to pounds 2.9m.
The final dividend stays at 7.5p for an unchanged total of 11.65p. But it was again uncovered by earnings of 10.95p (8.43p).
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