Perivale, Middlesex-based Scantronic Holdings Plc, manufacturer of components for burglar alarm systems for customers such as Chubb and Securicor, has reported pre-tax profits down 3% at UKP2.5m for the year to March 31, on revenues down 16% at UKP36m. Europe contributed UKP3.6m trading profits on UKP26m revenues, while North America traded at a loss of […]
Perivale, Middlesex-based Scantronic Holdings Plc, manufacturer of components for burglar alarm systems for customers such as Chubb and Securicor, has reported pre-tax profits down 3% at UKP2.5m for the year to March 31, on revenues down 16% at UKP36m. Europe contributed UKP3.6m trading profits on UKP26m revenues, while North America traded at a loss of UKP591,000 on sales of UKP10m. The group results as reported here do not include extraordinary items, since Scantronic has chosen to include these only after preference dividends, which Computergram does not take into account when calculating net results. Extraordinary items during the year added up to UKP1m gains this time and UKP2.4m gains last time. The former was a gain from the disposal of Scantronic’s shareholding in the Gardiner Group Plc; the latter comprised a UKP3.3m gain from the disposal of Alarm Parts companies, partially cancelled out by a UKP1.3m restructuring charge following the group’s withdrawal from European distribution activities. In April, Automated Security (Holdings) Plc, which is currently selling off all its investments to reduce gearing, placed its entire 26.44% holding in Scantronic with various institutional and other shareholders, including members of the group’s management; the board was pleased with the level of institutional interest. Tom Buffet, chairman of Automated Security, resigned from the board following the placing. Scantronic specialises in three types of component used in security systems – detection devices, control panels and communications devices. The last can be anything from a bell to a sophisticated modem linked up to a central computer, presumably at a police station or central security base. Scantronic sells direct to large customers, and via distributors to its smaller clients. Chairman Chris Brookes points to the new customer contracts won in the first half (CI No 1,807) as highlights of the year, as well as the entry into the European residential control panel market. The Arrowhead sensor division has now been formally launched on the back of a number of exciting new products – passive infra-red sensors, including Twintec sensors developed in conjunction with GEC Plc’s Marconi. North American activities are said to have benefitted from rationalisation measures, which are now complete. These involved the centralisation of activities into Stockton, California, supported by a Toronto-based sales office, and the closure of offshore manufacturing in Costa Rica. This has resulted in better operational communication and the chairman says that potential now exists to realise benefits from planned stock reductions. Looking to the future, Brookes points to Scantronic’s flexibility resulting from its strong balance sheet, which shows gearing at less than 20% of shareholders’ funds. The group reports net assets of UKP20m at the year end, up from UKP19m at the end of 1991.