Engineering and building products group Alumasc said last week that it would sell off non-core businesses after warning it detected few signs of improvement in the manufacturing sector.
This came after a 9.8% drop in its half-yearly profits.
Although Alumasc saw an improvement in die-casting operations, its finance director David Sowerby admitted the automotive slump had continued into the new year. ‘We are concerned about the effect this will have on the second half,’ he said.
Pre-tax profit for the six months to the end of December came in at £3.9m, down from £4.3m a year ago. Turnover was also lower, falling from £81m to £76.6m.
Analyst Mitchel Teager of Albert E Sharp downgraded his full-year forecast, saying the results sent out a mixed message.