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Cinpart

  • BY: Andrew Hore |
  • POSTED: 30/07/2008 |

Cinpart will report disappointing interim results.

The gas ignition components maker says that a change from air freight to sea freight for deliveries flattered the 2007 sales by as much as 15% as customers built up their stock levels because of the longer delivery times. That, and weak demand for gas appliances in the UK and US, means that first half sales will be lower than the £1.49m reported in the six months to June 2007. 

Gross margins are improving but higher overheads have offset that.

Profits in 2008 are expected to be similar to the £114,000 reported in 2007, although that profit was after £78,000 compensation to the former chief executive. Analysts had forecast profits of £271,000 on revenues of £2.98m in 2008.

The 2007 figures were reported in the middle of May so it seems strange that there wasn’t more indication of the tough trading conditions at that time. There was no update with the AGM statement on 9 June.

Cinpart is setting up a business in the UK to win components business from UK customers. Edinburgh-based Component Imports is focusing its activity on small and medium sized manufacturers. This will help to build up the group faster and make more use of its factory in Thailand.

The announcement was made in mid-afternoon and the shares immediately dipped 0.5p to 2p. Non-executive director Christopher Foster was buying shares at 3.5p and 3.75p each in May.

Cinpart is valued at £640,000.

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