A surge in new orders together with sterling's strength has pushed pretax profits at engineering and technology company Silvermines up 68 per cent to £2.6 million in the six months to the end of June.
The group, which has interests in the communications, electrical and electronics sectors, recorded a 37 per cent increase in turnover to £37.7 million, compared with sales of £27.5 million in the same period last year.
Commenting on the figures yesterday, Silvermines managing director, Mr Clem Jansen, said the strong first-half performance augured well for the rest of the year.
The latest half-year figures yield a 30 per cent increase in earnings per share from 1.72p to 2.23p and a 29 per cent rise in shareholders' interim dividends to 45p a share, compared to 35p last year.
Throughout the six-month period, the company has seen a surge in orders, with the total order intake, at £46 million, running 40 per cent ahead of the previous half year, according to Mr Jansen. While all divisions reported solid growth, its Continental Microwave Group produced one of the strongest performances during the sixmonth period.
Mr Jansen said Silvermines would remain focused on growing its core businesses throughout the rest of the year while it would also consider any suitable acquisitions in a bid to create consistent growth in earnings per share.
Silvermine's aerospace division made good progress, helped by a strong performance from its Pickering Controls subsidiary. Margins in this business were maintained, Mr Jansen said. A strong order book, which includes a £2 million contract for missile components, should ensure this would continue for the rest of 1997.
Its CCTV companies, which includes Molynx, Videmech and Hernis Scan Systems in Norway, have been amalgamated but would retain their separate identities in their various markets, the company stated.
The group's electrical division, Elequip Projects Ltd, has made significant progress in the Middle East and recently won a £7.5 million contract to provide and manage electrical power for a gas processing plant in Egypt.
Its broadcast and telecommunications division, the Continental Microwave Group and Falcon Equipment and Systems Limited, reported a good recovery in orders mainly due to the increased number of new products developed and introduced in 1996.
