Things are never as straightforward as they first appear at Telemetrix Plc. A group that buys and sells as much as Telemetrix can have cash balances that wildly fluctuate, and consequently a similarly volatile interest line in the profit and loss account. Interim pre-tax profits were down 6.2% at ú4.9m at the diverse group from […]
Things are never as straightforward as they first appear at Telemetrix Plc. A group that buys and sells as much as Telemetrix can have cash balances that wildly fluctuate, and consequently a similarly volatile interest line in the profit and loss account. Interim pre-tax profits were down 6.2% at ú4.9m at the diverse group from turnover that was up 15% at ú75.5m. Interest payable of ú312,000, against interest receivable last time of ú155,000 and a drop in GTI Corp’s profits, in which it has a 57% stake were largely reponsible for the drop. However, fully adjusted earnings per share were up 21% in the six months to June 30. This was driven mainly by the two wholly owned UK subsidiaries, Trend Communications Ltd and Zetex Ltd, according to chief executive Tim Curtis. Trend, which manufactures and markets the Aurora family of ISDN testers saw its operating profits held back slightly by the launch of two products and the opening of an office in France, the second largest ISDN market in Europe, after Germany. Curtis described adapting the testers to the French protocols as a a very painful process compared with other countries. A sales office has just opened in Reston, Virginia to exploit the growing US market. Profits fell 14% to ú841,000 from turnover up 29% at ú9.4m. Zetex had a good six months with its semiconductors, particularly its bipolar surface mount products. Profits were up 57% to ú2.2m and turnover by 27% at ú16.4m. Capital expenditure of around ú900,000 – about 35% of the total – at Zetex is likely to be higher in the second half, as a programme to increase manufacturing capacity and efficiency continues, said Curtis. GTI Corp appears to have turned the corner in terms of profits in the last quarter of 1994 as prices at Valor have now stabilised. The recently acquired Promptus Communications Inc (CI No 2,513) made a small loss and a small contribution to sales. Overall, GTI recorded sales up 30% at ú60.0m and operating profits down 8% at ú2.1m. A ú7.2m cash deficit at GTI and a positive ú4.3m at the wholly-owned subsidiaries resulted in a ú2.9m net debt for the group in the first half. GTI is still looking for a buyer for its electronic components and distribution businesses (CI No 2,663). Telemetrix will pay no dividend. Chairman Arthur Walsh said that with things turning round at GTI’s Valor and the growing product range, it looks good for the second half. However, it may be tricky to decipher as he said that you cannot judge the performance of this group on profits before tax or operating profits.