Robotic Technology posts a first-half loss

SALFORD-based engineering firm Robotic Technology Systems (RTS) has made a first half loss of £1.8m largely due to “ongoing contract disputes”.

The company, which provides software and equipment to help businesses automate repetitive or hazardous tasks, said it had incurred a £1.1m hit because of negotiations over an old contract and a payment dispute on a contract held by its Flexible Systems business.

Chairman Chris Brown said the performance in the six months to June 30 had been below expectations and trading would also be weak in the second half for the Flexible Systems business, “due to a reduced opening order book and difficult market conditions”.

But he said the RTS Life Science business had secured more than £5m of orders with pharmaceutical companies, and has successfully launched a new “small blood fractionation system”, which has won its first order and generated significant interest.  

Mr Brown added: “We anticipate that the group’s strong net cash position will continue in the second half of 2008, through both the improving performance of the operating businesses and the further repayment of the Doerfer loan notes.

“The board’s intention is to continue to return money to shareholders, while maintaining sufficient funds within the group to develop growth opportunities in the businesses.”

Sales dropped to £4.5m from £5.3m last time with pre-tax losses widening from £1m to £1.8m.