MS International witnesses a ‘fragile’ recovery

ENGINEER MS International is starting to see ‘fragile’ signs of recovery in its industrial division.

But the Doncaster-based group does not expect a ‘sustainable recovery’ in those global markets served by its industrial division to occur for a ‘considerable time’.

Its third quarter update also reveals that its defence business continues to prosper in line with its expectations.

As reported by TheBusinessDesk.com in November, MS International’s half year results showed that profits had dipped as a direct result of the recession.

But the group reported to the stock market today that its balance sheet remains strong with ‘high levels of net cash and short term deposits’.

The statement reads: “Since the time of the interim report, our defence business continues to prosper in line with our expectations.

“And pleasingly there are further signs that a recovery in activity in our industrial engineering businesses is starting to emerge, fragile though that recovery may be.
 
“The Group order book is substantial and heavily biased in favour of defence, a most favourable position as we perceive that it may be some considerable time before there is a real and sustainable recovery in order intake levels from the broad global markets served by industrial engineering.”

MS International also intends to concentrate on product development and production line efficiency in the immediate future.

Its half year results to October 31 showed its pre-tax profits were £1.23m, compared to £2.45m over the same period last time, on revenue substantially lower at £18.10m, down from £27.23m.