Losses widened at Proventec
STEAM cleaning and coatings group Proventec fell deeper into the red today but added its cost cutting programme was beginning to have a positive impact.
In the six months to September 30, losses at the Liverpool-based group increased from £649,000 last time to £1m. Turnover slipped from £8.2m to £8m.
The group added that its recent acquisitions of Frank GmbH, a German manufacturer of small high pressure hot water washers and steam equipment as well as Dutch dry ice firm, CryoJet Industrial Services BV, are starting to “show financial benefits to the group”.
It has been a tough year for Proventec which has been hit by economic downturn in the UK and Europe. However, the group has been busy streamlining its offering which has seen improve efficiencies and reduced costs.
Proventec said that the general economic climate remains uncertain and cash constraints may result in slower growth for the group than expected but it is confident its restructuring will see increased sales across both its healthcare and industrial divisions.
David Chestnutt, chief executive of Proventec said: “The first six months have been encouraging, despite the current difficult trading conditions in Europe. We have started a restructuring programme and have already seen a positive impact in sales and administration efficiencies.
“The acquisitions of Frank and Cryojet have further broadened the group’s offering and are proving to be highly successful. The group is in the final stages of restructuring and by 2010 will be well placed to benefit from the continuing development of its technologies.”
