Improvement continues at Ensor, cautious outlook

Building materials supplier Ensor posted a 31% rise in half year operating profit, upped its dividend payment 57% but said while the second half has started well, it remains cautious about future trading as economic turmoil in Europe continues. Operating profit rose to £607,000 in the six months ended 30 September from £463,000 the year before. Pre-tax profit rose to £549,000 from £404,000 the previous year. Revenue increased to £11.1m from £10.8m. Earnings per share have increased by 27% to 1.4p. Margin improvements were made at its door and security companies after it introduced new profitable products at higher prices. Volumes at the packaging division increased and links with its China office helped to offset polythene price increases during the year. Its building products division also improved due to better margins on targeted products in new markets. Ensor said it has continued robust control of costs across all areas of its business. "Although the second half of the year has started well, there are concerns about the political and economic turmoil in Europe. This region provides many trading opportunities for us and so we must therefore remain cautious with our outlook for the rest of the year," Ensor said in a company statement. Ensor declared an interim dividend of 0.275p per share, up from 0.175p last year. The group also said it is looking at a number of acquisition opportunities. "It is our intention to ensure that any business that joins the group will strengthen our position within our core activities."--cj