Crabtree, the Gateshead metal decorating machinery concern, has warned that recovery will be slow, slashing City expectations of its results this year.
House broker Credit Lyonnais Laing has sliced £2.5m off its previous estimate down to £4m pre-tax, though it looks for recovery to £6m in 1998. Crabtree reported a 47% fall in profits to £2.59m in the year to last September, but considerable recovery had been expected this year.
The shares have been a weak market since last year’s figures, and lost ground on – unfulfilled – stories that a big stake was about to be jettisoned.
A new product with great potential is the company’s single sheet Blank Printer, now being evaluated by Crown Cork in the US. If all goes to plan Crabtree will deliver 10 machines to Crown over three years.