(Alliance News) - Dewhurst Group PLC on Monday said it has delivered improved interim results, despite the challenge of inflation in its major markets.
Dewhurst is a London-based supplier of components to the lift, transport and keypad industries.
The firm reported pretax profit in of GBP4.0 million in the six months that ended March 31, up 8.4% from GBP3.7 million a year prior, on revenue from continuing operations of GBP30.4 million, up 12% from GBP27.1 million.
Dewhurst said sales in its Lift division grew in most regions, while sales in its Keypad division saw a "modest recovery". Overall Transport sales were fairly similar to the previous year, the company said.
It noted that sales in the Keypad division continue to be "quite volatile and unpredictable" month-to-month.
Looking forward, Dewhurst said its underlying market in North America remains strong, though there are signs that the second half of this financial year may be hurt by a slowing of orders and customer approvals to proceed.
The firm said its orders in Australia are "reasonable" but it will take time for these orders to filter through to sales, as continuing customer labour constraints are leading to some project delays.
"The UK has remained surprisingly steady given the economic backdrop, but may tail off later in the year as the impact of interest rate rises start to bite on the economy. We have better control this year on dealing with cost increases and all companies are focussed on trying to mitigate their impact. However, we are not able to pass all increases on to customers, so we are continuing to see margins squeezed," Dewhurst said.
Dewhurst declared an interim dividend of 4.75 pence, up 5.6% from 4.50p the year prior.
Shares in Dewhurst were up 1.4% at 634.00 pence on Monday afternoon in London.
By Heather Rydings, Alliance News senior economics reporter
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Dewhurst (DWHT)