The market quickly decided that the 15% knock which shares of Clyde Blowers took on last week’s currency warning was overdone in that the core business is not affected. The price of this previous market favourite has since staged some recovery.
Jim McColl, chairman, had reported which two businesses in the materials handling division, which make run-of-the-mill packaging and weighing equipment, had lost some overseas sales because of the strong pound. He has revised down by around £600,000 his estimates of the profits of these businesses this year.
But the bulk of Clyde’s profits come from soot-blowing equipment where the company is global leader with 50% of the market.
As it manufactures in the UK and in several overseas countries, production can be switched around to weather currency storms.