City news: Atlantic Global ups profits, Dyson to make loss; Discover Leisure cuts costs
SOFTWARE group Atlantic Global today said that it is expecting to increase full year profits to £400,000 and has already secured 60% of its support and maintenance revenues for the year ahead.
In a trading update the Cleckheaton-based specialist provider of integrated business and resource management software said that pre-tax profits for the year to December 31 will be “not less than £400,000 compared to £286,000 the previous year.
Atlantic Global said that turnover was £2.2m during the year compared to £2.3m the year before and it expects to pay a dividend of around 0.4p for the year when it announces its year end results on March 24.
The group said on top of its strong support and maintenance revenues, it has also achieved 30% of its budgeted orders for consultancy and development services for 2009 which when combined represented “a strong order book going forward”.
The group had £2.16m in cash at the year end compared to £1.55m the year before.
::::
SHEFFIELD-BASED material group Dyson said today said it expects to make a loss this year because of falling orders from international automotive manufacturers.
The group, which is in “constructive discussions” with its two banks, said that it is working to cut costs and contain cash by implementing short-time working and extended factory shut-downs.
It issued a profits warning in November but today said the continued deterioration of its markets would see it make a loss for the year.
Its key brands are Saffil and Ecoflex, serving the fibre and catalytic converter applications markets which have been hit by the fall in vehicle sales.
Dyson’s thermal technologies division, with its significant technical and manufacturing expertise, produces kiln furniture and precision ceramics for the industry sector.
::::
CARAVAN retailer Discover Leisure said today that it has made £2m of cost savings over the last 12 months but is uncertain what trading figures it will ahcieve for the full year.
The East Yorkshire-based group’s chairman David Morrow, will tell shareholders its AGM later today: “The winter is always a comparatively quieter period for caravan and motor home sales and we will continue to earn the majority of our profit in the second half of our financial year.
“As predicted in the preliminary results issued in December 2008, the market in the first four months to December 2008 remained at the lower levels seen in the fourth quarter of the last financial year. Group turnover in the same period was in line with expectations but margins were below budget.”
Mr Morrow said the Market Weighton group’s share of the UK motor home market has risen to 9.5% while total stock was 4% below budget at the end of December with total vehicle stocks reduced by £14.5m, a 31% reduction from the summer peak and a 17% reduction compared to December 2007.
“We expect to make further progress in our key areas during the second six months but the continuation of the financial crisis and low levels of consumer confidence make it very difficult to predict the outcome for 2009.”
