LONDON (Alliance News) - Energy efficiency products and services company Entu (UK) PLC on Friday said its pretax profit dipped in the year to the end of October due to the closure of its solar business and other costs, as revenue rose thanks to the contribution of acquisitions.
Entu issued a profit warning for the year back in September after it made the decision to shut down its struggling solar business, which had been performing below expectations and then failed to show any improvement in July and August.
On Friday, Entu said its pretax profit dipped to GBP7.5 million in the half from GBP7.9 million a year earlier, as it booked a GBP3.8 million loss on the solar business closure. In addition, the group made further investments in the rest of the business in the year which hit its gross margins. Entu is now seeking to cut costs to improve its margins and the efficiency of its operations.
Revenue rose to GBP99.0 million from GBP92.3 million, and the group said it will pay a final dividend of 2.67 pence per share, having warned in the September that it may scrap the payout. The revenue rise was driven by good performances in Entu's other divisions outside its solar arm, though margins also were under pressure in its home improvement unit.
"Despite the challenges we have faced this year and will continue to face as we reshape the business in response to market changes, our core strategy remains unchanged. We have market leading positions, a diversified product portfolio and an improving understanding of the market in which we operate. We look forward to the future with confidence in our ability to deliver growth and improved shareholder returns over the medium term," said Chief Executive Ian Blackhurst.
Blackhurst also warned that Entu's earnings for the year to October 2016 are likely to weaken against the previous financial year as it pursues strategies to improve its operational performance.
Entu shares were down 0.5% to 56.28 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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