Delta, the electricals and engineering products group, believes there are signs of early recovery in the Asia Pacific and European markets, but admitted that conditions are likely to remain subdued for the near future.
Chief executive Jon Scott-Maxwell said the German plumbing and British electricals markets remained difficult, but he ruled out the immediate prospect of more job losses. The 600 jobs cut by the company earlier this year were expected to be sufficient to enable it to cope with the market downturn, Scott-Maxwell said.
`We have been aggressive enough make it possible to break-even, especially if output starts to improve,’ he said.
He added that the three-year restructuring of Delta was now in its final 12 months and that the group should achieve 10% annualised growth and return on sales from its long-term growth businesses.
Pre-tax profits for the first half of the year were down from £23.2m to £10.8m, though this included exceptional restructuring charges. On a like-for-like basis, profits came in at £19.8m, down from £21.6m in the last half.