(Correcting direction of share price movement.)
LONDON (Alliance News) - Engineering company TP Group PLC on Tuesday said its pretax loss widened in the first half as restructuring costs compounded a decline in revenue.
The company, which changed its name from Corac Group at the start of June, said its pretax loss in the half to the end of June was GBP2.6 million, compared to a GBP2.1 million loss a year earlier. The loss was driven in part by exceptional costs the company booked from a restructuring of its operations.
Revenue, however, also also declined, falling to GBP8.3 million from GBP9.9 million, with the group saying its revenue for the full year will be weighted to the second half. But TP said GBP10.9 million of its current order book is due to be delivered in the second half, indicating its revenue will improve against the first. Its order book at the end of June stood at GBP19.2 million, up from GBP12.2 million a year earlier.
TP said it is continuing to trade in line with its expectations in the second half and said its sales opportunities pipeline has improved substantially due to cross-selling in key markets.
"We are pleased to report a solid set of results that clearly demonstrate further progress in our move towards becoming a profitable," said Chief Executive Phil Cartmell. "The board is confident in TPG's outlook and expects an improved performance in the second half of the year," he added.
TP shares were up 3.6% to 3.755 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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