Concentric is expected to sell off its loss-making pressed products arm as the engineering firm recorded a fall in profits.
The first half was worse than brokers had expected – profits were down 36% at £3.4m – and they have downgraded their forecasts for the full year to September.
The board is confident of producing an `acceptable’ result. Last year the company made £10.7m.
Philip Shepheard, of Williams de Broe, clipped £2.5m off his earlier estimate down to £9.5m, though he is staying with his previous £12.5m for 1997-98.
Shepheard said the company has now got its act together under John Towers, the new chief executive who joined from Rover. He believes the City will take more kindly to Concentric now that it is focused firmly on three areas – pumps, controls and plastic moulded products.
Its pressed products arm, which does not fit in well, is expected to be sold.
The business has done well with satellite dish manufacture, but lost its way with its subframes for the auto industry.