Shieldtech back on track

BODY armour specialist Shieldtech has returned to profit after a dramatic reversal in the company’s fortunes.

Last year the Warrington business racked up losses of more than £10m and spent the first five months of 2009 with its shares suspended after HSBC cut back its overdraft.

A £1.1m fundraising in May helped the business get back on track and it saw activity levels improve with new orders from UNICEF and the Ministry of Defence.

Turnover rose by 72% to £10.3m in the year to June and the company posted a £100,000 pre-tax profit. This compared to a £10.2m loss last time, reflecting a significant impairment charge.

The group said it continued to believe there are “attractive” opportunities to grow by acquisition. But the short-term priority is to re-establish sustainable profitable organic growth.

Chairman Tim Wightman said: “We are confident that our market place will develop further in this current financial year. The group is well positioned with innovative new products and a strong sales network to capitalise on exciting opportunities both in the UK and overseas.”