Profits at under-performing engineering outfit Concentric, the Midlands-based components group headed by John Towers, slumped by 13% in the first half of the year, it revealed last week.
The company, which received a bid approach early last month, also disclosed the full cost of restructuring the business. Exceptional charges of £450,000 helped drive pre-tax profits down from £3.4m to £3m, although operating profits were slightly up at £4.3m. Turnover was also up, rising from £64m in the first half last year to £69m this year.
Analysts said they expected more improvements after the disposal of an automotive business and recent acquisitions.
In a statement, chairman Ian Clubb said the group was well positioned to deliver further improvements over the full year now much of the company’s medium-term strategy was in place.
Clubb said the benefits of recent changes would have been felt sooner but for the continuing effects of the Far East economic crisis and the strength of sterling.