Downturn eats into Latchways profit

Safety products firm Latchways posted a 26% drop in half year pre-tax profit as it battles against a tough trading environment and as construction firms reined in projects.However the group said it was confident it will emerge from the current economic climate well placed to achieve profitable growth. Pre-tax profit fell to £3.6m in the six months to 30 September from £4.9m before. Revenues came in 14% lower at £16.6m.Commenting on the results, chairman, Paul Hearson said, "The past 12 months have seen global recession, the credit crunch and the structural failure of the worldwide banking system. It is therefore no surprise that we have seen a crisis in confidence throughout industry, and a marked reluctance to commit to capital spending projects."The group added that, "The construction sector, particularly in the UK, is likely to remain subdued for the immediate future, although specific local events such as the 2012 Olympics will help to mitigate this." The interim dividend has been maintained at 7.81p.