Lower admin and interest costs helped Specialist Energy Group return to profit in the first half of 2010.
Specialist Energy was formed when Hayward-Tyler owner Southbank reversed into Nviro Cleantech at the beginning of this year. At that time it raised £4m at 76p a share. Following the results the share price has fallen 5p to 45.5p, which values Specialist Energy at £11.4m.
Hayward Tyler is the core business. It supplies fluid filled electric motors and pumps for the power generation and oil and gas markets. The Nviro businesses have been discontinued.
Specialist Energy’s turnover was 5% higher at £18.6m, while an underlying loss of £636,000 was turned into an underlying profit of £979,000. This excludes non-trading gains and losses.
The mix of turnover was different. Manufacturing made up a much higher proportion of turnover in the first half of 2010 and it returned to profit. The profit contribution from the services operation was lower.
The order book is worth £27.3m - £16m manufacturing and £11.3m services. The order book has reduced as the company focuses on higher margin work.
There was a £3.13m cash outflow from operations. Net debt was £10.5m at the end of June 2010. There were assets held for sale of £278,000 and most of this relates to assets of the Vertus clean coal technology which have been sold since June. Some intellectual property rights have been retained.
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