Weaker pound knocks Proventec

STEAM cleaning group Proventec has been hit by the declining value of sterling.

The Liverpool-based business said its margins had been eroded by currency losses because it buys many of its products in dollars from the far east.

The group’s interim figures for the six months to September 30 showed turnover was up 41% to £8.18m. But the business made a loss of £649,000 compared with a £391,000 profit last time.

Sales increased in line with expectations but profit was dented by the weaker pound as well as the cost of listing of Proventec’s shares and loan notes on Alternext in France, and by making two acquisitions.

But the business remains confident that its dry ice and dry steam cleaning services will be adopted by an increasing range of clients in the health and food industries.

Chief executive David Chestnutt said: “Despite the problems of the economic slowdown and hopefully the short term volatility of the currency markets, the board remains confident and excited for the future of the group. 

“Proventec’s main businesses are focused on markets where cost is not necessarily the most important consideration and the group remains confident that it can continue to provide innovative and effective solutions where solutions are required.”