Sterling exchange rates are clearly important to Brasway, the hydraulic hose and Excelube industrial lubricants concern which has 30% of its turnover overseas. Stockbroker Williams de Broe thinks its shares will not perform much until the pound really weakens.
But the broker still expects 8% earnings growth this year and next, with the strong card the expansion of supply and technology agreements overseas.
Margins in the hose business Europower fell slightly last year. However, the Eurolube arm swung round from a small loss to a £379,000 profit and achieved a 5.5% margin.
The firm made £2.6m pre-tax profits last year on sales of £8.6m.